Help with my first rental!

[Bryan Clark]

First post on BP! Looking help deciding on my 1st deal. 3bed/2bath 2 story Home is older in an Indiana rural community.  Built in early 1900s but have had all updates and well taken care of.  Nothing but minimal cosmetics needed.  Previous homeowners converted detached garage into 1 bedroom apartment/building that is currently being rented @$400/mo. They are longterm and want to stay. Nice single older gentleman. Main home should pull in $800/mo due to other rentals/apartment pricing in area. Home location has nice exposure. Sale Price: $100,000 (realtor thinks appraises around $115k)....20% down ($1,900 closing costs)....$80,000 mortgage....$450/mo payment Annual Income: $14,400 Taxes (at max) is $2,000/yr.....Insurance is $800/yr.....$1,200/yr reserve for repairs Net income: $5,000/yr Should I go for it? Thanks!

[Mike McCarthy]

Make sure you include zoning in your contract contingencies. The converted apartment should be permitted and approved as a second dwelling.

(Or if not - you should definitely know about it)