Rental house: 480K with down payment of 20% = $96K and mortgage = $384K
Monthly rental income of $3,500 and annual income of $42,000
For P&L calculation, I would use $42,000 - $3,500 = $38,500
$38,500 - $7,200 (1.5% property tax) - $3,850 (maintenance) - $20,700 (5% mortgage+insurance) = $6,750(annual net income)
$6,750 / $96,000K = 7% rough return.
If you can get 10%, I would do it. Good luck.
