Would this make a good rental?

[Paul Vang]

Would it be a good idea to rent out this property?

3 Bed / 2 Bath / Family room / Living room / Dining Room / 2 car garage house
Location: South Sacramento, CA
Principle/Interest/Tax = $1100/month
Water/Sewer = $85/month

Possible Rental amount = $1350-$1470

I know that if the loan amount was less, it would be better in terms of positive cash flow but this is where it's at right now. I know it doesn't meet the 50% rule but I'm looking for some ideas.  Please help!

[Al Williamson]

Forget the 50% rule. Create your on hyper local X%  rule. National averages are useless - they are just an example of a system you could implement for your area.

Now, regarding your question. It makes no since to buy negative cash flow unless you know of something that would change the situation... Like a high tech business opening up an office down the street.

If you don't have that type of an advantage, then keep your powder dry, wait for the right time to buy in the neighborhood that you know like the back of your hand.

Your time will come my friend.