I added a new asset to my portfolio. We bought a single family home to use as a rental property. This is in a new development near where we live. These are established developers that have already finished a very nice community in our area. This on is to be set up similarly with restaurants, shopping, a pool and rec center.

The details

200k price

20% down

Mortgage payment at 7.25% interest is 1260 a month.

HOA is 125 a month

Property management is 10% or 165

Rent will be 1650.

100 a month in cash flow. Since it’s a new build hopefully low on maintenance for a while. Once the development gets closer to completion (phase 2 of 8) hopefully equity and rent will increase.

I sent up an LLC to hold the real estate on legal zoom.

Any advice or questions welcome.