That means you income is
1300
-300 to set aside for repairs and lost rent
-800 for mortgage
200$ a month is now left for your ROI basically.
I would also say this... almost no matter what.... there will be repairs or paint that needs to be done, and no matter if you do it all yourself that comes with cost (I feel like home depot prices has gone up insanely lately)
I myself do not have a lot of rentals, but I am low risk the ones I have. I took time to save up. I understand being exited, I so get this.. I worked myself half to death on my first 2 rentals renovating them myself, because every cent saved was closer to the next one. But be careful, the economy right now makes no sense.. records house prices and record stock market at the same time we have record unemployment and defaults from both private and companies.
I wish you all the best, but protect yourself and your future.
Originally posted by
@Michael Fellers:
Jack,
I appreciate the constructive criticism, and I’ll admit that inexperience is something that describes me well. As far as the numbers and other information; I have a degree in business and have read dozens of investing book. I know that doesn’t account for much but I am fairly confident in my ability to look at numbers from an unbiased perspective and make a good decision based on the info I have. I currently have a full time job as a sales rep and make 2,500$ month after tax and 401k. My mortgage payment for my primary residence is 580$ but I pay 630$ which equals out to one extra payment a year. I will be getting married soon and my soon-to-be wife is more than willing to invest with me, but I don’t want to tie her name in yet to avoid damaging her credit if things take a led to turn somewhere. The market value for renting a 1000 sq ft unit in this area isn’t about 650/month Which would total 1,300 if both rented out with out problem. The estimated mortgage payment would be just over 800 I figured if i escrow tax And everything. I have about 5k in savings and 3k in my checking.
As far as advice, is there anything you would specifically look out for or anything to make sure of before you put an offer in?
Thank you!