Strategy for first property, opinions?

[Christopher Davis]

Ok let's say house is 175k. 25% down would be 43,750. (I spoke with a lender and he quoted 25% down). Loan 131,250. Let's say conservatively 4.5%, 30yr. PI = 665.02. Estimating TI at 200, total debt 885.02/mo.

If rents are around 1200, this would be 314.98 before expenses. Let's say I want a minimum cash flow of 200. Allocating (314.98-200) 114.98 for expenses is thin, but let's go with this for now. Even a $200 cash flow, a standard minimum goal thrown around all of BP, seems so thin. I would hope to do better.

2400/yr / 43,750 cash in = 5.5% ROI. This doesn't seem to great.

What variable would you change to improve this deal? Look for a better rate? a cheaper house?

What is another viewpoint to help me analyze this deal?

Thank you so much,

[Tyler Gibson]

@Christopher Davis I would be looking for a better deal aka a cheaper property. I try to get my gross rents at 1% of the purchase price. If you can do that the numbers are easier to make work. If you plan to have a property manager then 114.98 in monthly expenses is not enough. Is there a lawn ? will you mow it or pay someone? try one of the calculators on here they are good and call out things you may not be thinking about.