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Updated over 4 years ago,

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38
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Mike Lindsey
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38
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Contemplating buying house to rent out. Looking for any advice.

Mike Lindsey
Posted

I'm by no means a man of means. I currently live in a manufactured home, but it's paid off. My only debt is my vehicle which still has a few years to pay off. My job is at the bottom end of what is considered a middle class annual income. That being said I have my 401k which I contribute to monthly that will provide a sufficient retirement decades from now. I also have about $15,000 saved and have about $900 after expenses each month. It's just me and I don't really do anything as far as entertainment so the $900 is solid. Also get money through bonuses annually which averages to around $400 a month. 

I realize this seems like bottom of the barrel scraping by but I figured I might as well make the money work out for me. My plan is to buy and rent it out, but I want it to be something I can afford to pay on my own month to month just for worse case scenario. I was figuring I could afford a 30 year mortgage on a $140,000 home in Texas. I figured with the $900 that would cover mortgage, PMI, dues, and property taxes.

Thing is, when I bought my current home my parents and grandmother helped me with all of the actual paperwork, closing, finding the home etc. All I did was pay the money until I paid it off on a 15 year. So I honestly have no idea how to go about looking for a good deal, what costs to factor in, how to calculate potential cash flow and if I am setting myself up for failure, or anything that is necessary to be successful in this small project. 

Was hoping some here might point me to some good articles or books that would help me to be better informed. Figured it would be far more ideal than just assuming I know what I am doing and getting myself in over my head.


Thank you in advance for any help!

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