Getting Started With First Long Term House Rental

[Brent Harasym]

Hello everyone, first post on BiggerPockets and I have been reading up on REI for quite some time now and getting close to jumping in. I'd like some input on wrapping my head around a potential first house and if this sort of deal/rent makes sense. A lot of these numbers of what I have pulled from the real estate listing, and inquiring on property management/landlord insurance rates.

I am not looking to make a fortune overnight and realize this would be a slow return on investment/passive income. My wife and I would remain renting in our current apartment and we could easily afford to cover the mortgage indefinitely if/when it would be vacant. 

Personal background: Married with no kids, 100% debt free, live a rather tame lifestyle and don't spend large amounts of money, two newer vehicles (2020 & 2024) so no vehicle purchases expected for the next 10 years. 

Net Income: 100k~ depending on overtime worked

Here is a breakdown of the potential property we would be looking at buying as a long term investment. 

3 Bedroom, 1 Bath, 1000sqft, attach single car garage, fully fenced property, needs no work and would be in a state of immediate ready to rent.

Purchase Price: $289,900

20% Down payment: $57,980

Mortgage Rate: 4.5% 

Amortization: 25 Years

Property Tax: $3185 annually

Bi-weekly Mortgage Payment: $592

Rental Details:

Monthly Rent: $2600

Mortgage: -$1184/month

Property Manager: -$260/month

Landlord Insurance: -$105/month

Property Tax: -$265/month

15% Put Away: -$390

Leftover: $396

Does something like this make sense to jump on? The current rental market in the city in Northern Ontario, Canada is pretty hot and houses for rent are taken pretty quickly. There are currently only two other houses for rent on the market for the entire city and they are listed at $2850. Similar sqft and no garage, yard, and 1 less bedroom.