Kansas City Area New Rental

[Coty Spraggs]

My wife and I are new to real estate and have just decided to diversify and start to shift money from REITs into our own rental properties. We currently live in a split level house in Olathe, KS that has been refurbished on the entire interior (including all new appliances), new exterior paint, and roof is good condition. Only thing not replaced has been the HVAC.

We are financed on a 30 year at 2.75% and put $0 down due to it being a VA loan. It is currently valued at 225k but realtors say they could get 230-240k while we owe 182k. A PM informed us that he could easily rent it for $1700 (possibly lower at $1600 in winter time). Currently the mortgage, insurance, and taxes have an escrow payment of $1138. PM fees would be $119 (minus all the other minor fees).

My main questions is, would $438 be enough cash flow before capital expenditures for this to be worth it? We have no need of the income as we are just going to let it sit in an account and accumulate. 

We have been looking at acquiring the house next door to us that is currently unlisted at 150k that needs interior work but has had all the big ticket items done recently (new windows, doors, siding, roof, high efficiency AC and furnace) but needs the interior refinished. It has an ARV of approximately 210k and will need approximately 15-20k work to the interior.

Any help on any of this will be greatly appreciated. I appreciate everyone for their time and what they contribute to the community.