Advice or input needed on recent purchase. Did I mess up?

[John Jimenez]

Hey all,

I would greatly appreciate it if anyone could let me know if the home I recently purchased will end up biting me in the butt!

So here's some backstory: I recently closed on a twinhome (just one side) for a total of 210K. I financed using the VA loan for 0% down at a 3.75% fixed rate. It was a total of $2,100 out of pocket for closing costs and my monthly mortgage bill will be $1,500 (included taxes and insurance, no pmi for va loan). I plan on moving out after a year (due to va loan restrictions) and renting this home out.

I see a similar twinhome on my block renting for $1850 (it was recently updated inside), Zillow estimates rent at $1650-1800, and it estimates the home value at $165k(another home recently purchased on my block sold for ~$197k. I hope I provided everyone with enough information, any advice, or input on whether this was a good or bad deal is appreciated!

Thank you so much!

[David Kenny]

Hey John, I think the deal is really tight personally. I shoot for (as we all know) 1% min, which would have put you around $180k purchase price. LTV also affects the deal (higher pmt if you are financing more than 80%). Is there an HOA fee, and if so what does it cover?

This deal may be better as your personal residence, and trying to find something with a better spread for a rental. $300 a month doesn't leave you much for vacancy, maintenance, mgmt, cap ex, etc.

My last deal was $129k purchase, put 20% down and just signed a lease for $1.5k/mth for example.

DK