Looking for Someone Else's Opinion on a Rental Property

[Andrew Jones]

Hello everyone,

I'm looking for someone else's opinion on a rental property

Some of the numbers of the property look like this:

Bedrooms: 2
Bathrooms:1
Lot Assessment:$66,400.00
Building Assessment:$76,300.00
Total Assessment:$142,700.00
Annual Municipal Taxes: 3400

Built in 1961

It's a one story home with a crawl space as a basement. It sits on a piece of land close to 5000 square feet.

I'm going to try and get the property for 139,000.

I did some numbers and if I amortized the property over 25 years at a 3.5% (at the moment it's 2.79 for a 2 year fixed mortgage but I'm playing it safe) mortgage rate with a 30% down payment (41,000$) it would be a $480 monthly payment.

I'd put the property up for rent as is for $600 a month. I'd let the tenant pay for the electricity. Snow removal and grass cutting will be offered to them as a extra and will not be included within the rent.

Exit Strategy

Land in the area is going for around 38$ a square foot (kind of high but it's a suburban area with close access to a major city).

The way I see it I can't go wrong, I could always sell the land for basically what I would have paid for it.

This would be my first property. I'm open to opinions, thoughts and please tell me if there is anything I over looked.

[Nathan Emmert]

You don't pay property taxes?  What about property insurance?  What happens when the dishwasher breaks?  The fridge?  The HVAC?  The hot water heater?  The roof springs a leak?  What happens when your tenant moves out and you have a vacancy for a month... or two... or three... what happens if the prior tenant trashes the place and you have to spend a few thousand getting it rent ready?  What if they stop paying and you have to pay for an eviction, that's about $800 here?  Who is paying for water/sewer/trash?

Do yourself a favor and do some more research.  Look up the 50% rule for expenses.