Thoughts on first rental new construction, Denver

[Jim Frederick]

Hey all, 

Long time lurker.  Wanted to run this scenario past you professionals.   I purchased a single family home, 4 bed 2 bath, about ~18 months ago.  It's new construction in Broomfield Colorado, which is in the Front Range of Colorado, about 20 minutes from Boulder and mountain access.   Paid 462,000 w/ 10% down payment. It's the cheapest model home available in our development. 

The same model house across the street just sold for $488,000 which I was pleased to see.  It's appreciating nicely which is typical for this area as it's pretty close to the mountains and Boulder County.  

I would like to turn this house into a rental and would love some input on the numbers. Current Mortgage w/ PMI is about $2500 per month. Comparable rentals in the area are around $2700 netting us about 200 per month. With current appreciation I would hope to be able to drop the mortgage insurance in about 2-3 years once we hit 20% equity which would increase our monthly cash flow by another 250 dollars.

It's new construction.  Nothing to fix or replace hopefully on the horizon and the home has a 10 year structural warranty.  We would extremely careful with tenant selection.  It's a fairly expensive place to live which I hope translate into a renter pool of mostly professionals.  We are relatively recession proof too as it's a pretty desirable area.    

Would love some input on these numbers and anything I am not considering or being realistic about. Thanks!