Buyer's Remorse

[Dwayne George]

AHHH!!! I just bought my first rental property, and am freaking out a little bit! We bought the property (in great condition!) for $47,999.  It's an awesome property 3 bed 2 bath, 1,300 sqft, tax value is $110,000, the house next door is for sale for $135,000, and it has long term tenants who have perfect rental history. That being said...the seller was a little misleading about the rental income. He had originally told me it was bringing in $950/mo.  Through talking with the tenants I found out they were paying $795/mo.  The seller then told me that they had agreed to pay UP TO $950.  So I go back to the tenants and they said "NO WAY! We could never pay that much!" I was so excited to buy my first deal that I went ahead and purchased the house anyways. The renters and I agreed on $825/mo. Did I make a mistake? Am I shorting myself? I'm so scared, and excited at the same time!

The numbers up there are all spread out... this is what they look like put together.

Purchase price- $47,999

Tax value- $110,000

Monthly Rental Income- $825

Taxes- $1,312

Vacancy- 8%

Management- 10% (self managing)

Repairs/Maintenance- 10%

Misc.- 10%