Looking at getting started with my first property

[Trey R.]

Hopefully this is the right forum...

I've been wanting to get involved with real estate investing for quite some time now but can't seem to make myself take the first step in actually doing something.  I think I've decided to start my venture with an inexpensive home to figure everything out.

The house already has a tenant that is paying $550 a month and has been there since 2006!

I have not been to look at the house or anything yet, just browing the web.

Purchase price:  $42,900

Tax value is showing $40k

20% down = $8,580

rent = $550 / month

Expenses:

property tax = 529/12 = $45/month

mortgage = $180/month

insurance = $16/month

vacancy (10%) = 55/month

repairs (5%) = 28/month

= $324

$550 - $324 = $226 cash flow a month including vacancy and repairs

$550 - $241 = $309 cash flow a month without vacancy and repairs

I know I need to do a few things since there is already a tenant.

-Get a copy of the current lease agreement

-Get proof of payment history

-Find out who is currently paying for utilities, who takes care of yard maintenance.

-Has the tenant filed any legal grievances against the landlord?

- Pets or no pets

Anybody see anything I'm overlooking?  I looked at the area and could probably even raise the rent if needed.