Dummy's rule of thumb: if annual rent is less than 13% of proper

First thing to new landlords or landlord-want-to-be, You never get 12 out of 12 months. It would be really good if you get 11 months. And you need to figure in repair cost (just toss in $500 for a low number.) And your insurance for a rental is NOT going to be $250. I would say a decent coverage of property plus liabillities would be at least $600.

OK, now do the numbers again:

3491.20-1500-500-(600-250)=1141.20

You get better number when you figure in the equity you put in each month, which is roughly 2800. So your profit is about 4000. In terms of return on total initial cash outlay it is little under 10%(4000/(38800+closing costs 4000), not bad if you can get good tenants who pay and stay.