Hello BP community, I am moving much closer to purchasing my first deal.  

IRR is much more accurate and closer to the true return on your investment over your hold period.The IRR will tell you what you should purchase the property at.

@Kumi AldermanGiven the ratio, I would sell and buy two houses where monthly rent is a bit closer to 1% of purchase price.

In your case it is probably closer to 800K or thereabouts depending on the costs of sale.  

It cost me closer to $3,000, but I am in Colorado.

Great way to pick up some good info and possibly a deal.I have listed below some Rules of Thumb we use.Good luckPaulExpensesTaxes  (80% Purchase Price) x (Mill rate) = TaxesInsurance $250 per door (this could be higher, depending on if property is closer to coast, the claim history, if in flood zone, etc)Repairs & Maintenance (R&M)  $300–$600 per door Contractors and material, Carpet Cleaning, Keys and Locksets, Make ReadyGeneral Administration  $100-250 per doorManagement Fees Typically 4% of Total Income for larger propertiesMarketing/Advertising $100 per doorUtilities Take historical from last year, annualize this year’s, compare & then take the higher of the two. 

So actual comes in closer to 80%.

I live about 1.5 hours away from St Louis with the intention of moving closer to the city.

The grass is a pain to cut because of the steep hills.  

Below is an overview of the numbers.4bed/4.5bath    1,760sq ft    Attached 1st level garage    Private fenced and grass backyard for each unitModern appliances and designCommunity amenities such as pool and bbq areasInitial Investment:Asking price: $239,900Initial Investment: $48,000 (20% down) + $8,000 (closing cost est)$56,000 totalMonthly Income:Rental rate: $2,400Monthly Expenses:HOA Monthly fee: $125Covers everything exterior... painting, fencing, mowing, etcProjected taxes: $450/monthHazard Insurance: $55/monthManagement company: $168 (7%) Projected Mortgage Note: 30yr note assuming fixed 4.5% interest rate$970TOTAL: $1,768/monthNet Cash Flow: $632/monthDoes anyone have any initial thoughts or things I may be overlooking?