Help with rental property analysis.

[Steve Medina]

Hi, I live in California and the property here is a little out of my budget. I am from Louisiana and still have family and friends there, one of whom is a realtor. My realtor friend showed me a 1400sf SFR on .2 acres. The price is 64,500. I was wondering if I could get some help me see if this is a good deal for a buy and hold. The property does not need any work other than a deep cleaning. 64,500 purchase price 10% down because the loan will be structured as a second home. 6,450. 3,000 closing cost I will be taking out a loan and have excellent credit After the down payment and closing cost, the amount financed will be 61,050. Which is the purchase price and closing cost that I am rolling into the loan. The loan % should be around 3.9. Rent in the area is about $625. Insurance is about $70, and there are no property taxes for a property under 75k in Louisiana, property management of $65. Rent increases about $30-$50 a year. I'm looking to cash flow about $215. This is my first property, so just looking to get some feedback. Thanks for your time!

[Braden Smith]

Hwy @Steve Medina. That seems like an awfully low asking price for a property that needs no repairs. Where is the property located?

When analyzing potential rental properties you need to factor in a vacancy rate of 10% and another 5% for repairs and maintenance. 

Louisiana has no State Property tax, instead, property taxes are assessed and charged by the local Parishes and Cities. In order to qualify for the Homestead Exemption from property taxes you must own and occupy the property. Only one primary residence per individual or married couple qualifies for the Louisiana Homestead Exemption. The Louisiana Homestead Exemption exempts the payment of property taxes on the first $75,000 of the homes fair market value ($7,500 off of the assessed value).

Also, is the property in a flood zone?