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Updated about 3 years ago on . Most recent reply
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Convert primary residence to rental
hi all! I am considering converting my single family home in Richmond VA to a rental, this would be my first step into the real estate world. I've tried many of the free available calculators to determine cash flow and i come up with about $150-200/month after accounting for current mortgage, taxes, insurance (not landlord policy yet, is landlord typically more expensive?) 7% vacancy rate, 10% repars,10% capital expenditures, and 5% management company fees. Is this enough free cash flow? Have i accounted for everything in expenses and what ive calculated seem reasonable? This is my first primary home built in 1986. Ive lived here 4.5 years bought for $302,000. I Owe $276,000 and zillow has the sell value at $422,000 and rent estimate at $2,500. Any help/advice/thoughts are appreciated!
Thank you
Mason