Newbie here looking to make first rental property deal

SFH 3 bed 1 bath
Price: 140,000
Tax+ insurance:$4205
Location: excellent (cannot get a better location)
Condition: Good (does not need anything fixed)
Rent:$1200 (can easily get that)
Take home after mortgage at 3.88% with 20% down $322/ month. This will be our first rental property. What do you guys think?

Hi Author – that’s a gross rent yield of 10.3% / year. That is pretty poor. Over time, you can expect expenses, vacancies, and capital items (roof, mechanicals, etc.) to consume 45-50% of that gross rent yield. Try to buy so that you get at least 13% gross, and preferably 15-18%, for nicer homes such as you’re describing. Otherwise, you can quickly find yourself cash flow negative.