Posted by speednxs on June 07, 2006 at 18:44:09:
Only 30K for a downpayment is going to make this tough. Your CAP rate is a little over 6%. You are going to pay a higher interest rate and Private Mortgage Insurance (or similar). As a SWAG I’d say you are negative $400 a month. If you had 20% down with a lower loan amount and better interest rate you’d only be losing a few bucks a month if repairs remained reasonable. Since you know what actual loan rate you can get and you’ve looked over the last two years 1040 Schedule E’s (hint, hint) for actual expenses, your analysis is probably much more accurate than mine.