patrick.net

NO!

I was looking at investing in a house, renting it out and then selling when the market improved some. But it seems as if the numbers don't work out. I would make such a small profit on the house that it isn't worth it after taxes. For those who like a romp through the numbers, plow ahead.
House price 400,000

Income 48,000 per year @4000 a month
Vacancy 4,000
Op exp 4,800
______________
Net op in39,200
school tax8,000
33fedtax10,296
_____________
cash flow 20,904

ask price 350k
total acq 450K
Mortgage 450k

down 90,000
27,096
______________
first year expense $127,096

Where do I go now for the correct formulas to determine if its a good match?

Baring any hiccups I would break even a five years out with $7,096.00 is this correct?

SFH, Well paid professionals, standard colonial brick, maintainence was 7,200 a year. No HOA, Taxes are 8000 a year. Hire manager.

Employment is varied and a bedroom community of pittsburgh, pa.

Thanks sface, only problem i just found is that a house across the street is going for 3000, at a tiny loss. Probably a person that is underwater. Anyway thanks for the math. After I found the right calculator, I got simalar results as you.

Just cheat on your federal tax returns like the other mom and pop owners. Write off materials you return, take itemized deductions you don't really deserve.

You'll come out way ahead.