First Rental Deal Good or Bad (Help)

[Brandin S.]

Got our pre approval 

240000 for the house

36 down plus 11 for closing 47 total

3.99 apr 

1286 rent

Just learned the areas max rent is 1500 for a 3/2

I used the tool for rental property and it is showing 100 profit

Bad deal for my first rental or good? Please help lol

[Tim Herman]

@Brandin S. You will lose your shirt on this. 204k mortgage is $975 per month pi. 1% for taxes- $2400 or $200 per month. Insurance will be $60 per month. Total will be $1245. $41 and you still have to account for vacancy,8%, repairs,5% and capex,10%. You will end up around $250 per month in the hole.  -3k/47k= negative 6.4% return on money.