[Calc Review] Help me analyze this deal

[Raquel Rigby]

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*This link comes directly from our calculators, based on information input by the member who posted.

This is our current residence and we are having a hard time deciding to sell it or keep it as a rental. Our issue is that the numbers for cash flow only works because of the low loan amount. We wouldn’t be able to cash out on any of the equity because then the cash flow would be negative. Do you think it would be better to sit on the equity for long term and wait this one out even though it has all the equity tied up or sell now? We would  need to use the equity to get into another house and maybe another investment property.

Right now, we are beginners and this would be our first property as a rental if we were to go that route. 

[Tim Herman]

@Raquel Rigby This is not a rental. Long term expenses run 50% of monthly rental. Your total expenses are 33% not counting PI. @ 50% of rental income you will have $675 to cover a debt payment of $809 a month. A loss of $134 per month. Most newbie investors under estimate expenses. An example a new roof cost $7500. Your $81 CAPEX budget you will be able to replace the roof in 92 months providing your central heat and air or any other components fail. Good luck on finding a good cash flowing property.