My first little property analysis

[Brian Smith]

I'm looking into purchasing my first rental property from an inheritance left by my father (I feel like he would be cheering me on right now!). I have several questions about the deal and just as important, how I should structure the deal. I want to get in to this full time at some point and I have about 65k to start. The property is 35k and needs around 15k in repairs. Am i correct to approach this with 20% down (+/-10k) and use 15 k for repairs for a total out of pocket investment of 25k? This way I can easily jump on a future property while having a minimum amount tied up in the first property. Any advice on other options would be greatly appreciated. On to the property...

It's a 2 BR / 1 BA 975sqft home with an attached carport. Comparables in the area are in the 75k range, and average rent is $800. I'm assuming a $750 rent to be safe, but I think this will cash flow well unless I'm missing something. First deal so I'm nervous something is amiss. Thanks in advance!

Rental Property Analysis
Expenses	Income
Cost	35,000	Rent	775
Mortgage	28,000
Down Payment & Closing	10,000
Monthly Taxes	43.75
Monthly Mortgage (28k @ 5% & 20 yrs)	185
Insurance	60
Vacancy (15%)	116.25
Repairs/Capex (5%/7%) 12% Total	93
Repair costs to rent	15000
Cost Analysis
Estimated Monthly Cash Flow	277
Cash on Cash Return (Cash Flow / 25k Invested)	13%