Renting out the home I live in to move into a live in flip

[Chris Marshall]

Hello all just a quick question on the numbers or this idea my wife and I are playing around with. Right now we own a 3 bedroom 2 bath 1400sqft home in farmington MO. We are thinking about renting it out so we can move into a live in flip. I’m comfortable with the flip numbers but I want to know what you think about renting out our personal home. The numbers are, mortgage $392.87 insurance escrowed in. Electric for out property we budget $400/month usually less than $300/ month. Property tax this year was $875. And then we have a building on our land that is on the same electric bill but has it’s own insurance policy (I’ll explain why in a moment) which is 475/ year or about $37/month. So total bills on this property equal about $905/ month. That second building on our land is a hair salon that my wife runs her business out of. It pays us $140/ week in rent for fair market cost for the building and it’s share of the electric which is about half. On a four week month we get about $560 in rent from her salon. We put the rental money her salon pays us in one account and then we have that account pay us $100/week to pay it’s share of bills. So in a 4 week month $400 of the total $905 is paid by the salon. So now with the explanation out of the way, is $900-950/ month going to be enough rent to make it worth it? Those would be expected rents for a house like ours in this area. Also I’ve already checked our escrowed insurance would drop about $48/month by switching it to an RDP insurance policy. I’m just not sure if I’m thinking of everything when looking at rental income. What percent of the rental payment is supposed to be set aside for repairs? And does anyone have any better ideas on how to make this better?