I’m looking in to buying a rental property, most likely a condo or possibly a duplex and wondering what your advice would be to watch out for/look for. My goal is to establish myself as a landlord so that in two years time I can start claiming the income in order to secure larger loans and acquiring more properties. I want to establish a large cashflow with rental properties so in 10 years I’d be looking at $5000 plus cashflow per month. I’m 22 with a 630 credit rating, just getting started, and after speaking with a loan agent have determined I will qualify to buy a condo I’m looking at for 40k, with 5% down. The condo i’m looking at is 1700 square feet, in a descent area around Fort Worth texas, and it seems to me I can make around $250-$350 cashflow easily.
What should I be looking at?
For a 40,000 loan I’m assuming my mortgage payment would be less than 400, which i think is conservative, feel free to let me know if i’m wrong. With taxes/insurance (guestimating around 150 a month together) my total payment due would be no more than 550 a month, again, correct me if I’m wrong.
Other condo’s in the area around 1400 sq feet are renting out for 800-900 and if I fall somewhere in there, maybe above, seems to be at least 250 a month cashflow.
Is there anything else I’m not considering, or any advice you may have?
All comments welcome, thanks