It's my first. Tell me what you think.

[John N.]

Well, after 3 years of reading books, 2 years of reading different postings here with many podcasts and 1-1/2 years of being a member of the local landlord association and attending many classes I finally have my break to get my first property.

First the specs. It's 780 sq ft, 2/1, full basement ranch style with an detached garage. The basement is unfinished which I like for better inspections.

I'm picking it up on short sale for $43,500. Current comps in the area are ranging from $50,000 to 80,000. This house sold for $89,900 in 2004. Tax will be $1,850 and insurance at $463 (already called my insurance company).

Rental comps for 2 bedroom / single family homes range from $750 to $800.

The numbers I came up with is nothing great but I plan to buy and hold for a very long time.

I’m putting 20% down a 30 year at 3.5%. My lender is telling me $161.66 for principal and interest but factoring in his escrow would be a total of $404.99 but I think his number for tax and insurance is a little high.

After looking at the numbers and throwing in myself for repair reserve, vacancy rate, property management, I’ll gross $165 per month providing I rent it out on the low end. It’s not much but it’s a start to get my feet wet.

Let me know if I’m missing something or on the right track.

Thanks for all the great posting from the past and future and really look forward to any replies.