Looking for your thoughts

[Andy Robison]

Here we go, after reading BP for a year and finally moving to a position that I can get together the funds to buy my first SFR home. I know BP has a love affair with MFR but I cant bring myself to buy one for my first purchase, the extremely conservative side of me just won’t let me do it. So I’ve gotten a list from my agent and I want to bounce some numbers off of everyone here.

First home is a 3 br 1 ba house in a C+/B- neighborhood asking
purchase price is 35,000
repairs high side 15,000
Total cash invested +closing 54,000 closing
20% down
30yr fixed rate mortage for 28,400
Taxes 786/yr (has gone up $2/yr for 3 years previous
new siding/roof/hvac
Estimated rent 800/month Little less than what everyone else is in the area but again I like to plan for the worse. I cant see this house renting for less than $800.

SO… if everything goes well. I’m thinking this.

800/month rent (low)
300/month for mortgage and taxes (high)
That’s $500 for everything else/month would this I’m not looking to make bank on this first house I’d just love not to try and fail within months. I know winter is coming up and I can afford to do the repairs and hold the home until the spring or after the holidays when I can get in a qualified renter. SO BP tell me what I’m missing. I’m still seeing 3k/yr using the 50% rule is not a bad return for my education for a long term buy and hold.