First Potential Rental Property

[Franchesca Ramaker]

Hello BP,

Thank you in advance for any input and advice. I'm trying to get into my first rental property, but with the market hot and prices high I haven't been able to find anything where the numbers work. I use BP's rental property calculator, which is fantastic. I finally found a SF property for $50,000, which seems incredibly low, in a B/C area of St. Paul, Minnesota. This seems like a no-brainer, and when I drove by the property I saw others touring it (first day on the market). When I run the numbers, however, I only come out with a $40 monthly income. I plan on using the BRRRR strategy.

Purchase Price $50,000 cash
Repairs $30,000 cash
Estimating $500 for closing costs
4B2B 1323sqft SFH
Income $1100/month

Expenses
Taxes $57
Insurance $90
Water/Trash $150
Vacancy 5% $55
Capex 5% $55
Repairs 5% $55

Net Profit of $638/month
If I refinance and get a loan for $80,000, PITI is about $600/month.

This is the link to the BP report I made. https://www.biggerpockets.com/buy_and_hold_results...
Any advice or corrections on my numbers is greatly appreciated!

Thank you!