The location (schools, restaurants, crime, etc) is decent but nothing too promising in terms of appreciation (3% annual average) Here are the details: Purchase price: $170,000Rental Estimate per month: $1500HOA: $1000/yrInsurance: $1100/yrTax rate: ~3.4%I assumed the following:I use a 20% downpayment on a 30 year fixed conventional loan w/ 4% APRNew build so warranty is covering most things so minor, if any, maintenance will be neededTake into account 1 month of vacancy per yearTake into account annual broker fee to list of one months rent~5K closing costs~2k in appliance purchasesResult: Assuming rent range of $1500-$1550/month and assuming 1 year I wont have to pay the broker fee to list:From my cash flow analysis I am projecting to have positive cash flow of around .02%-2.1% per year. 

Good luck, but definitely go looking for better cashflow with more detail in your numbers.

I have a 2 bedroom/2 bathroom primary residence that I bought with the intention of renting out the extra room.  

Thanks for this post Jane Dang Arlen Chou can you pm me or share details of the Meetup next week?

I've heard of this kind of thing happening so I'm extra careful when I rent because I live some distance away from the properties I manage.

If you want to talk more details feel free to message me and I'll be glad to help.

Four years ago a little idea started developing: I wanted to make extra income without a second job.  

The location (schools, restaurants, crime, etc) is decent but nothing too promising in terms of appreciation (3% annual average) Here are the details: Purchase price: $170,000Rental Estimate per month: $1500-$1550HOA: $1000/yrInsurance: $1100/yrTax rate: ~3.4%I assumed the following:I use a 20% downpayment on a 30 year fixed conventional loan w/ 4% APRNew build so warranty is covering most things so minor, if any, maintenance will be neededTake into account 1 month of vacancy per yearTake into account annual broker fee to list of one months rent~5K closing costs~2k in appliance purchasesResult: Assuming rent range of $1500-$1550/month and assuming 1 year I wont have to pay the broker fee to list:From my cash flow analysis I am projecting to have positive cash flow of around .02%-2.1% per year.

Obviously you can get more detailed with it but I think doing this will give you a decent start to determine if something is worth investing in.

Write out in detail what steps you will take to achieve your goal!