Here are the details:Conventional loan (because there’s no rush)Purchase price: $450,000Down payment: $90,000Interest rate: 4.5%Principal : $1824.00Utilities: $390.00 monthInsurance: $60.00 month Property taxes:$422.00 month Total: $2695.00Gross monthly rents :$3425 (There’s a little room overtime to increase rents)Cash flow $730.00 Vacancy factor not figured here probably somewhere around $300.00I’m wrestling with the expense of 90k down .

I currently pay $800( principal and interest, tax, insurance, and pmi) for my mortgage and receive $1100 for rent.

House was originally worth $189,500 but with my downpayment, minor improvements and principal paid toward the loan I would say my total equity is $26,880.It would rent for $1,500 per month.

Fannie Mae guide on what counts towards 10 financed properties:https://selling-guide.fanniema...The borrower is purchasing a second home and is personally obligated on his or her principal residence mortgage.

I tweaked the inputs but I suspect the calcs are still off based on the comments :\Home Price: 235kMonthly Rental Income: 195020% Down: 47kInterest 4%30y FixMonthly Mortgage+taxes+insurance: 143412% monthly PM fee: $2345% vacancy: $97.5/mo (5% x 1950)Monthly Cost: 1765.50 (1434+234+97.5)Y1 NOI: 2214 (1950-1765.5)*12Cap Rate: 0.94% (2214/235,000)5% Closing Costs: 11750 (5% x 235k)Est repairs: 1kUp front costs: 59,750 (47k+11750+1)CCR: 3.71% (2,214/59,750) You are including your principal and interest in your NOI, which you are using to calculate CAP rate.

I have been running numbers on rent and and need a more experienced investor to give me insight on a good number for vacancy and repairs to save every month to add to the principal & interest, property tax, home insurance, and mortgage insurance.

@Sanjiv Mehta, I agree with @Bruce Lynn.If your wife is involved with the transaction is a principal on her own, as a principal of an LLC or as an agent, she needs to disclosure she is an agent.

You want “interest only” and not principal for a portion of the rent up period.13Financing- long-termIf your going to grow, unless you have significant capital at your disposal, find a future business partner.14Business ModelI’ll clean up and post one of my spreadsheets later.15Construction:Use local knowledge/availability16Permits17Building type18Building manufacturer19Contractor20Day to day:21Rental ContractPost a “Topic” on this Forum and ask for some copies sent to you.22Rental RatesZagreb’s GDP per capita is $19,132 versus where I live $60,246 metro area of 1mm.

(goes up year over year with more paid to principal and less to interest)These will be standard MLS deals with light rehab if any so no real value add play.  

My primary in Ca is worth $575k now and the loan balance is around $317k paying $2600 for PITIA (principal, interest, tax, insurance, HOA).