I recently bought a brand new home as a rental property in Syracuse, NY:
Price: $200,000 Down payment: $40,000 (20%) Monthly payment: $1,500-1,600 a month (~$800 mortgage + ~$700 for taxes) Price I pay for agent to find a tenant: $1,000 Rent: $2,100
FYI Syracuse taxes are extremely high:
The tax rate for the village of East Syracuse is $15.22 – the highest for all villages in Central New York and 16th among villages in the state. Add to that school, county and town taxes and the total rate for village homeowners is $46.70.
However, since it's a brand new home, the taxes on the first year of the house are extremely low because they are based off of the land value. which means I pretty much got a "free ride" on taxes for 6 months. This brought back a return of 5k or so.
Based off of my numbers, is my cash flow considered decent? I ask because this was my first real estate investment so I don't really know what's considered 'good'. My agent is trying to sell me another place that's more expensive but with a similar return (brand new house, $250,000-260,000, rent it for $2400, monthly payment would be $1800, freeish taxes on the first 6 months) and I am not sure if these numbers are any good.
One thing that bothers me are the taxes. The monthly cash flow is the same, but the monthly payment is higher. However, this is supposedly the "hottest" neighborhood in Syracuse, so it would be easy to rent (according to him).
Any advice would be appreciated. Thanks!