Hi All, I've been a lurker for a while and enjoy what I read. Big stuff out of the way, I've been a money moron and I'm working on just having a half decent regular retirement, forget RE. Anyway I am considering a property just down the street from me. It is listed for $160,000 but it has been sitting on the market for a few weeks. That's not really unusual around here, I'm in Canada and the noise about raising the interest rates seems to have freaked everyone out. Anyway I'm going to view it tomorrow. If there are no big problems with the inspection and it just needs a superficial freshening up I would try to get it for $140,000. By superficial I mean painting and flooring. That would leave me with a mortgage of about $115,000 for a 3 bedroom, 1 1/2 bath. The average rent for comparables is $1400 plus utilities.
Mortgage $475
Taxes $150 (estimate)
Vacancy contingency $140
Repairs $140
Insurance $150 (estimate)
Total $1055
So I would have a cash flow of $345/month
Am I figuring this right?