Living in house one year, then renting it out

[Michelle Botelho]

Hello!! I'm still in the analysis phase to see if i should continue. There are about 5 or so houses in this neighborhood which would fit in these numbers. So the numbers are averages. I've crunched numbers for each house. We are looking to live in the house one year to qualify for owner occupany rates. Then hire a property manager. Single family house $100k DP could be 0% or up to 20% VA loan fee: (seems 5% is best "deal") 0% dp - 5% dp = 3.3% fee ($3,300) 5-10% = 1.5% fee ($1,500) + ($5,000) 10%+ = 1.25% fee ($1,250) 30yr va fixed currently (0 points) 3.625 15yr va fixed "" 3.00 Closing costs $3,000 (guesstimate) 1100 Rent 450 Mortgage 30yr 0%dp 3.625 100 Tax 75 HOA (snow removal, garbage, community pool) 50 Insurance 165 Maintenance and vacancy(15%) 110 Property Manager (10%) 1,100-450-100-75-50-165-110 = $150 net profit (50% rule = $100 profit)