First Investment Property

[Brett Mather]

This is my first post here, so I'm just looking to get some more experienced advice.  I'm about to dive in on my first investment property.  I'm looking at a 2-3BR townhouses very close to where I live in Pooler, GA.  I have at least 20% down for any of the places I'm looking at, and based on the rent I expect to get I should be able to come close to breaking even on cash flow, and I've tried to include conservative estimates for rent and for repairs.  Luckily, my household has enough income from our day jobs that we could pay the mortgage at these places even if we don't find renters, but my goal is to buy and hold as a rental to create some passive income as we begin to grow our family.  Here are the places I'm considering, please let me know what you think and thanks in advance!

http://www.zillow.com/homedetails/328-Gallery-Way-...

http://www.zillow.com/homedetails/242-Opus-Ct-Pool...

http://www.zillow.com/homedetails/238-Opus-Ct-Pool...

http://www.zillow.com/homedetails/128-Sonata-Cir-P...

http://www.zillow.com/homedetails/123-Acapella-Ave...

http://www.zillow.com/homedetails/205-Ventura-Pl-P...

http://www.zillow.com/homedetails/203-Ventura-Pl-P...

[Jeremy Rubin]

Welcome to BP Brett!

Why townhomes? Just curious, not personally a fan of HOAs as they can change and kill your cash flow unless you pass that along to your tenants. 

Before you spend $20k to $30k as a down payment  just so that you can break even on the mortgage and expenses I would be very certain that the house I chose was either WAY under market value or there is a high probability of appreciation. And I mean high high probability as in they're building a new Hewlett-Packard plant or a University nearby in the near future. And that's still a gamble. Otherwise you're just tying up that money for 15 or 30 years. When the house is finally paid for you will start to recoup your investment. 

Most of us on here look to invest in a manner that we are cash flowing positive each month $100, $200 or $300 or more from day 1.

A safe estimate is that over the lifetime of your landlording that 50% of your gross rent will go to cover expenses, vacancies, taxes, insurance, etc. That does NOT include your mortgage payment. 

Just letting you know what I wish someone had told me before I had gotten started!

Cheers