First house rented at 1,545. It actually clears what the spreadsheet said.
Six weeks in, so this is early, but the part I was scared of is done and I want to write it down while I remember the details.
1970s three bed two bath in a small city about 50 minutes from me, priced at 145k, bought at 139k after the inspection turned up a failed water heater and some panel work. I used a DSCR loan, 25 percent down, 7.25 percent, so 34,750 down, 4,200 in closing costs, and 5,800 in turn work. Call it 44,750 out the door. Rent 1,545.
Monthly: 711 principal and interest, 155 taxes, 118 insurance, 139 to the property manager at 9 percent, and I hold back 120 for maintenance and 77 for vacancy. That leaves around 225. Roughly 6 percent on my cash before any appreciation, which is not thrilling, and it is real money going into an account.
The part that nearly broke it was insurance. I had 95 a month in the spreadsheet from an online quote. At binding the carrier saw a 19 year old roof and came back at 118, and the first carrier declined the roof entirely. That plus the appraisal landing 4k under contract price meant I brought about 3,000 more to closing than I planned, out of the money I was holding for the turn. If I hadn't had reserves I would have closed with no cushion at all.
What I would keep: the sewer scope, 250 dollars, and going to the house twice before offering, once on a weekday morning and once on a Saturday evening. The second visit is how I found out about the parking situation on that street.