Would you close on this?

[Jamaal Rogers]

It's an owner finance deal, 22 minutes from my house in a decent area.

Sales Price 75,000.00

Down payment 10,000.00

30 Yr Fully Amortized  at 7%

Mortgage-  $432.00 P&I

Tax- $90.00

Insurance- $50.00

Total monthly payments- $572.00

Rent- 850.00

Cash Flow- $278 a month

[JD Martin]

You forgot maintenance, vacancy, capital expenditures in your pricing model. If you assume 8% (one month) annual vacancy and even something modest (10% total, low but hey) for maintenance & capital expenditures, you need to add another $1,666 to your annual bill, or $138 monthly. That leaves your cash flow at $140/month. Not great in my opinion but only you can really decide if that's acceptable for your market and returns desired.