You likely have access to actual tax numbers, and you should get a quote for insurance. $50 sounds far too low for both together pretty much anywhere.
What are you numbers for expected vacancy? What amount every month do you intend to put towards reserves for major repairs? What about budget for non-capital repairs? What improvements or repairs are necessary to make it rent-ready? What are your closing costs? If you are basing your interest rate on normal mortgage quotes, you should be aware that investor mortgages are generally higher interest rates by 1-2%. 4.1% seems unlikely.
Basically, the absence of these items in your evaluation, and the shockingly low guesstimates on others suggests that you may need to do a little more homework before you are ready to evaluate a deal.
Taking your numbers and amending them to those I personally feel more comfortable with, this deal becomes just ok, but nothing special. Based on what we see here, however, it's very hard to get excited about and very possibly not a good deal.
Thanks for reply!
Closing costs are includedin total mortgage listed above, assuming 20 percent down (but that was one of my questions- will it be 20 or 25?) - or we can even bump the mortgage number up to 36k to pad it another 1000 for evaluation purposes.
here is what other numbers are based on:
interest rate: my credit score is over 800, I have zero debt, with a 6 fig income, so I will qualify for best rate. It's 3.1 right now on 15 yrs so I added a full point due to rental- is that not enough to add? That was my best guess based on research.
Insurance and taxes - that's based on my own house- for a 200k property my taxes are less than 90 per month and insurance is 76 per month... I will get info from seller, but both of those costs are VERY low around here. Realtors website listed both at 40, I increased to 50 for calculations.
Vacancy rate- how would I know that? I would assume low since its a desirable area, but how to calculate?
I would put about 2500 in it right off the bat for upgrading kitchen and adding washer dryer- I don't think it needs anything else, but have appt to go inside next week - new furnace just installed etc.
my plan would be to keep a couple grand in cash dedicated to repairs- everything else I would throw at mortgage to pay off in 7 yrs (planned FIRE date). I have plenty of cash reserves to take care of issues that come up, so would let cash flow go to mortgage repayment. At least that is the plan right now Due to FIRE date- unless I am shown it makes more sense to carry mortgage for full term.
Anything else I need to be looking at?
