Rental Property - Yes or No

[Christopher Bell]

Hey all!

Long time lurker and prospective/active investor.

I've always wanted to get into rental real estate. Always been a passion of mine. I recently just flipped my first home and learned a TON!

Anyway, my question here is if you guys would/would not pull the trigger on this home.

I've got this:

Acquisition cost:       $105,000

Renovation Cost:      $12,000

ARV: $140,000

Vacancy Rate:                  5%

Expenses:                   $655

I would be looking to acquire the property cash and then refinance when repairs are completed. Does anyone have any input of if this seems like a good investment? Again, this would be my first property I'm looking to purchase and rent out. I'm sure there is a ton that I'm missing so is there anything you would yield advice wise? A lot of the calculators I'm plugging numbers into show about a 7% Cap Rate and exceeds the 1% rule I've read about.

Any advice is welcomed and appreciated. Expenses are listed below.

Expenses are: Tax $325, Insurance $50, Maintenance: $100, HOA: 180 so $655/mo

[Nathan Gesner]

What's the projected rental income?

How are you arriving at your numbers for purchase, ARV, rental, etc?

Your expenses don't include capex or property management. Capex may be low if the home is fully renovated but I doubt that's the case. And you may be managing the property yourself but what if life changes and you are unable to and have to hire a property manager? Will it still cash-flow with 10% of your income going to a property manager?