Looking at buying a house to rent out, did research and built a spreadsheet to help me ...

Looking at buying a house to rent out, did research and built a spreadsheet to help me understand investment returns. What do you think?

First, here's the link to my spreadsheet:http://bit.ly/2NAqsPe

I can have gotten a lot wrong, I have no idea, but I'm just curious what you think about it.

Context: Looking to Buy a 270-282K Home, 3,000 Sq Ft.

The agent says I can get 2200-2400 per month for this rent. Zenstimate says 2000. So on the sheet, I used 2000 and 2400 in the worst case

I assumed that closing costs when purchasing can range from 2-5%. I have doubled this to explain the costs when I end up selling as well as agent costs? So in my worst case it looks like 10%, which is what I use as my basic cost of investment

I think of looking at the monthly costs, calculating against 3.5% and 4% interest. I looked at how much my mortgage payments would go to the manager, and used that principal as “income”

In the lower right corner are my profit / investment tables

Are there any variables that I am missing, or that I have wrong?

Some things I've already thought of:

What will happen to the value of the house over time, whether it costs or goes down is hard for me to say

Missing months of rent, among finding tenants, probably on average one month a year without rent?

I used the “1% rule” because 1% of the house should be off each year to fix it. It's come a month. Not sure if this is accurate

Bold numbers are the numbers that can be changed on the sheet, and the rest calculated is suitable for these

I am looking for a return on investment after 5 years, is that reasonable real estate expectation?

Submitted by / u / MattyAyOh

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Fri, 01 March 2019 10: 51: 33 + 0000
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Looking at buying a home to rent out, did research and built a spreadsheet to help me figure out investment returns. What do you guys think?

First, here's the link to my…

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