2/2 in Weston, FL - Appears to be an entry level rental

[Tony Oliver]

Hey guys!

Ive been listening to the podcast at work and decided to give this a shot. Below is the spreadsheet model that someone posted and I decided to do an analysis on the first property I saw on realtor.com for this area. I personally am interested in the area since it is IMO the dream location for me to live in one day. Anyways here's the details.

Property is a 2/2 townhome asking for $180,000. It is 1,225 square feet with a canal view. A lot of people like having canals in the backyard for casual fishing and can be a peaceful environment when a patio is set up properly. Im guessing the property was recently listed since there is no pics available but just by judging the neighborhood it sounds like a decent place to live (aka the "weston dream" as South Florida investors may know about). 

I am of the opinion that this may be a good starter property for investment as it would allow someone to get their feet wet and see what the game is like. Assumptions included an 85 down payment for someone qualifying for an 30 year FHA loan at 5%. I also plugged in the assumptions of the 2015 published millage rate of approximately 17 mills. I found this number on the Broward county property appraisers site. For some reason Weston has two millage rates. One is probably for another zip code. Either way my numbers take into account the higher of the two to be conservative. I also took into account 3 months vacancy for stuff like upgrades and repairs that could be needed as well as looking for and interviewing a tenant. I also thought about considering inclusion of either a new fridge or washer/dryer to add as one time operating costs (1,000 under repairs and maintenance)

I wound up getting a taxable income of 950 bucks after things like debt service and depreciation. I know its nothing to brag about but hey at least its a positive number right? Anyways questions and comments are welcome. What do you guys think of this deal??