Rental Property Analysis

[Alan Hicks]

Purchase Price = $150,000

Down Payment = $30,000

Mortgage = $120,000 ( payment with insurance/taxes = $808 )

Rent = $1100/month

End of year 1:
Total Income = $13,200

Mortgage/Tax/insurance = $9,696

Profit = $3,504

Reduction in principle = $2,101

Total profit = $5605

ROI = $5605/$30000 = 19%

Thoughts ?

Of course, i would love to buy houses for 50k and flip for 150k.. but that's not going to happen in metro atlanta.