We are under contract for a 1700 sqft 3/2 home on just over an acre in spring branch, tx. It's in a very high end neighborhood.
It needs some cosmetic work. But really doesnt need much for us to rent it out (we plan on 1800/mo)
We are under contract at 154000 with them paying their half of closing. So that puts us needing about 40k for down and closing.
We are taking about 23k out of our 401k for down payment and using cash for the rest.
The loan repayment will be about $960
401k repayment will be about $400
I plan on hiring property managers as well, and they are about 10% of rent plus some other fees.
Plus all the allocations for repair and such I need to account for... I feel like 100 cash flow isnt much.
I'm nervous that I didnt make the right decision tho. Any encouraging words? Am i doing the right thing, or did I screw the pooch??
The only thing keeping me going is that if I made cosmetic repairs I could flip it and probably get at least 30-40k profit.
