Rental property. Does this make sense ?

[Account Closed]

Hello,

Appreciate if you can share your thoughts on buying LTR hold n keep investment property in Frederick, MD. I have a condo in my mind listed for $325k, built in 2016, with HOA of $225 and most likely will fetch $2400 in rental income. I will go with traditional mortgage with 20% down. Thank you.

[Joe Villeneuve]

Not enough info.

1 - taxes and insurance
2 - What is the property value
Mortgage will be somewhere around 1600/month.  That leaves $575 for taxes, ins and the most important thing...cash flow.  

With a DP of $65k, you would need at least $1000/month to come close to getting you cash back in 5 years.  Even if you waited 10 years, you would still need 500/m in CF to recover your cost (DP).  That would leave less than 100/month to cover T/I...not even remotely a possibility, so even without the missing info (see above), I'd say this was a very poor deal.