Mortgage, Taxes, Insurance, HOA: $3040.37Estimated rent: $2475Total Expenses: $3660.12Vacancy (5%): $123.75Repairs (5%): $123.75Capital Expenditures: $100Property Management (11%): $272.25Information when I bought the house in 2022, new constructions Purchase Price: $373000Purchase Closing costs: $4662Current home value: 400k-420kCash Flow: $2475-$3660.12= -$1185.12; -$71107.2 at 5 yearsCash on Cash Return on Investment (CoCROI): 0%Appretiation per year (6%); $535,290.23 at 5 yearsEquity: Loan value $345,089.53 at 5 years; $190,200.47 in equity at 5 yearsLoan Value today 6/2024: $368,201.59Total ROI in 5 years= (Total profit/Total Invested capital)/ Time (in years); Total profit: $190,200.47Total Invested: $71107.2 (neg cash flow) + $42757 (closing sale costs)= $113,864.20Total ROI (5 years)= ROI 67%, annualized ROI 10.8%My biggest concern is that I am relying solely on appreciation and assuming will appreciate at 6% per year. 

Acquisitions costs are low, property taxes are low, available housing stock is good, and there's always a need for workforce housing and rentals for young professionals. 

Like Terrence mentioned, if it will be your primary residence then you can take advantage of the low downpayment options and better pricing. 

When buying a Real Estate consider property tax new cost specially in today's Market.

Rule number 2:  The Option Consideration is NOT a deposit on the purchase, it's the cost of the Option Contract, and it should NOT be given as a credit toward the purchase of the property. 

@Chris Seveney yes I made sure to uphold my end to a T and also did about double the minimum.

I hired a local handyman by father knew to 'save on repair costs' as opposed to going with one of my usual GC's.

They claim that the replacement cost has gone up 400k since the policy was written, and that they had just raised rates this past January.  

They have cost my business tens of thousands of dollars and countless wasted hours of follow ups and missed opportunities.

The house we are moving to costs $400,000, and we plan to use part of the loan amount for the down payment on this new house.