Mike - no doubt the folks making over $400k worked for that money and I certainly don't advocate giving it all to the government, but just some quick math based on effective tax rates versus the marginal rate of 37% you mentioned.....if a couple is married filing jointly and they had $400k in w2 income and took the standard deduction, their effective federal tax rate would "only" be 22.5%, roughly $90k federal taxes on $400k in income.

I said 3br before I meant 4 sorry about that 10x180x4=7200minus vacancy (which can be higher than just 5%) so say 35% to be conservative = 2520=4680minus mortgage, tax, ins (about 2300)=2380 minus utilities =1500 (niaf)asking price are all around the same amount within 2-3 thousand .. looking at 500k, 20k down loan amount 480... even with my math there is still profit but i feel like that's a big purchase for a first timer... let me know guys 

Just trying to do our homework and be ready. 

@Sacoria Henderson Simple math. 6-3.6=2.4% difference.

I did a little of homework myself to do a ballpark check on how much rent could go for via Rentometer as well as a quick skim on CL for home rentals with the same # of bedrooms.

This math makes sense and I will be reaching out to lenders this week to see what kind of offers I can get.   

HI Austin,It may be that they do not read the meter every month and do some type of math to come up with the dollar amount based upon the season.They may have not read the meter (for instance) for 2 and a half years, and were mathing the bills based on that.

That part of it is a little confusing, because I'm also resetting my ammortization and... yeah that's too much math for me to figure out.

Crap, most middle school kids never did their home work or studied before Covid... now?  

BP has really helped me analyse and see the potential in real estate around me (and showed just how important it is to do the math to find the right deal).