New Investor Rental Property

[David G Vreeland]

I am new to these forums and also a first time investor and am hoping for some advice on a potential first rental investment.  It looks like a good deal and I  am buying from someone I trust but could use some input from sophisticated investors.

Purchase price: $110,000

20% down

Loan rate: 4.75%

APR: 5.0% (would love some explanation as to how this is calculated

Rental rate: $1250

House type: row

A friend works for a company that flips houses and is doing the flip.  They were going to list it for $120,000 but are selling to me for $110,000.  It's in a decent neighborhood, the houses around it are valued at $130,000+, right next to elementary school, and zillow estimated the homes in that area will go up 3.1% in value next year.  No additional repairs needed and I'll just need a washer/dryer and fridge.  

[Joshua Mangini]

Hi David, have you checked out the calculator here on the site? It's absolutely amazing! Takes a whole lot of the guess work (and my terrible math skills) out of the equation.