100% New to REI, trying to learn math...

[Rael Mussell]

Ok, so I am 100% new to this game, but have everything lined up to get into the game (So I think.)

I've picked two successful REI's brains for hours on end and have a lot of good advice on incorporation, insurance amount to carry, rent loss insurance, et al..

So lets just get to it:

I have found a SFH listed for 23,300. It was a previous rental and I would rent it again.

www.ziply.com and craigslist shows comparables in rent of 1500.00-1600.00/mo

The neighboorhood is 44% rental community. I actually work about 1 minute from the property and the area is NICE. It has crime, but I would walk the streets at night feeling safe.

So, using some math I found here:

GR-OE=NOI

QUESTION1: What encompases OE? (Tax/Insurance/Maint?)

So, let's lowball it all --

1500-1500(.5)=750

NOI = DS + CF
NOI-DS=CF

Mortgage = 23,300 @ 7%, 30yr = 153.02
Taxes (NON-HOMESTEAD) = 4700 (Guesstimate based off other comparables and citysearch.com data) = 393/mo
Insurance = 100.00/mo (Guess)

750-153.02 = 596.98

???