First Step - Buy a Single-Family Dwelling

[Adam Eckhoff]

Good Afternoon BiggerPocket Members,

I'm just going to run a quick scenario for you guys, and let me know what you think. 

I currently have saved a lump sum of money... As of now its growing in an Index Fund; however, that's super boring, but SAFE. Conversely, I want to take that money and drop it on a Single-Family Dwelling in New Jersey (where I currently live) and then rent it out. 

Scenario 1: I purchase a three-bed, single-story, single-family dwelling for $200,000 to $300,000, have it financed so the mortgage would be around $1,700 to $2,400 (making up numbers here), and rent it around $2,800 to $3,000 per month. I would manage the property.

WHAT am i not thinking of, or considering? Is it the amount of fit-up it would need to become "tenant ready", is it "how long does it take to get a tenant in place"? Why cant I just pull the trigger, slap a tenant in there, and collect $$$ per month? Do i need to find a discounted property?

Thanks,

Adam (future investor). 

[Shawn Mcenteer]

@Henry T. from what I have experienced NJ is fine if you know the areas to avoid.   NJ is horrible if your buying in certain towns.  My wife and I are over a decade now collect every payment of rent, never had a missed payment, never had an eviction.  self managing very easy with very few phone calls each month