Rental Property Basic Numbers

[Jacob Albergotti]

There are plenty of houses in my area selling for 125k, 3 bed 2 bath 1200 sqft, very close to move in ready (new carpets and painting cabinets are the only renovations that need to be made for the most part). Say I save up 20% so 25,000 and get a mortgage for $100,000. Zillow is giving me an estimated mortgage payment of about $700 a month, including taxes, PMI, insurance, and HOA. I know these Zillow estimated numbers will be different but if there isn't any major unforeseen expenses, would moving in on a deal like this and renting out for around 900-950 a month? It sounds like a fool proof plan for cash flow on paper, I know things don't always work out like expected but just looking for any advise or areas I've overlooked. Let me know what you guys think, Thanks

[Dennis M.]

A 100k house renting for 700$ is a poor investment . You need to get 1% of the purchase price in rent as Thomas indicated