Is getting $1,000 rent a month for a house you bought for $100,000 a good deal?

Question

So your total out of pocket was $100,000 it appraises for $130,000.

You are getting $1,000 rent a month and going to hold on to it till the market gets alittle better then sell it.

What do you think? Sounds like a good plan or not?

The $100,000 you put into it was cash.

Answer 1

Sounds like a good deal.  I guess the mortgage is around $500, so you are making a nice profit, plus you get the tax deduction.  If you can keep it full 12 months a year thats good money.  If you get too greedy, then renters will move on...no income on empty units.

Answer 2

anytime you can cover your mortgage and taxes and keep it consistently rented 12 months a year you are doing well. Making money over the mort/taxes/costs even if it is 200 bucks a month your building equity. So yes it is a great deal for you as long as they do not destroy the place and pay every month.

Answer 3

Maybe..maybe not.

If you are getting $1,000 in rent, and your mortgage is $1100 per month, then it's not a good deal.