First property purchase

[Gene Fish]

So my wife and I are considering moving and turning our purchase into a rental after two years. Would love to hear if this would be worth considering.

The move would actually be a significant downgrade from our current house but would move me closer to work for two years and hopefully we wind up with a nice investment.

My wife is unwilling to move into a fixer upper so we found a brand new house. We won't be getting it for a bargain or anything but it'll be fair.

Purchase price will be around $450,000 with minimal work needed. (We will probably put like 50% down and get a decent rate mortgage). It's a 4 bedroom 3 bathroom with nice ceiling size, good curb appeal, etc. Great school district and neighborhood. Taxes would be $7,500.

My realtor is estimating rental at $2,700 or so.

Any way I crunch math it seems like my cash on cash return will be hovering around 5%.

I'm not as concerned with eeking out every single dollar. To me having a newer property with hopefully less repairs and vacancies is important. But I still want it to make sense obv.

Thanks for any input. Love these forums.