First Rental Analysis

[Christopher Hodum]

Hey Biggerpockets Members,

I am currently in the process of renting my first home that I purchased. Below is my analysis.

Mortgage, Property Tax, Home Ins.- 830

HOA- 80

Garbage- 15

Lawn Maintenance- 25 

Vacancy- 10%

Repairs- 10%

12month leases

House Details

3Bed 2Bath 2Car Garage 1450SQFT in Florida

Inside a partially gated community. No front gate. HOA will be installing one this year.

Rental Comps in my area - 1100-1400 none are inside gated communities.

Rent Charge- 1250

Gross Annual Revenue- 15,000

Vacancy- 1,110

Repairs- 1,110

Gross Expense- 11,400

Net Profit(Before repairs/Vacancy) - 3600

In advance thanks for your help and time.

Chris

[Michael Wentzel]

@Christopher Hodum

Don't worry too much. If you are self-managing, you give yourself some extra margin. When I say my homes are old, I mean it. Most were built in the early 1900's. So your 2006 property should have significantly less maintenance and perhaps less turnover/ vacancy. So it might very well turn into a decent property for you. 

But in the future, I would like for properties with a bit more margin between the income and expenses.

Mike