Is this a bad deal...

[Byran Parson]

45k purchase price. 3br 1 bath SFH. 10k down. 35k borrowed. 10 yrs at 5%. Monthly princ and interest payments of 375. Taxes and insurance 100 a month. 475 total piti. 675 rent. 200 cash flow.

[Andrew Nevins]

"45k purchase price.  3br 1 bath SFH.  10k down.  35k borrowed.  10 yrs at 5%.  Monthly princ and interest payments of 375.  Taxes and insurance 100 a month.  475 total piti.  675 rent.  200 cash flow.  "

I personally would not do this deal.

For starters, 5% on 10 year money is insane. Look at 15 and 30 year loans. I just closed on a property with a 3.875% rate for 30 years. There should be better financing options out there. Find a better rate and term; this will help improve the cash flow.

Additionally, you only have $200 cash flow prior to any repairs/expenses that may occur.

Let's just assume the best case scenario and you NEVER need to spend any money for repairs/leasing etc. you would clear $2,400/year ($200 * 12). You Assuming no vacancies/downtime would recover your down payment back in just over 4 years. However, you would also need to factor in closing costs (inspection, appraisal, title etc).

Do you plan to self manage? What about advertising/leasing costs? These items combined with routine maintenance could quickly eat away the $200 in cash flow after PITI