Is the following investment property worse to buy?

I am a newbie in this forum, Would someone please help me to take a look to see if the following investment property worse to buy?

Price: $19,400

HOA: $340 per month, $4,080 per year

last year’s tax $1,420

If I put 20% down ($38,800), and get 30 years fixed rate at 3.875%, my monthly mortgage payment will be $729.90 which is $8758.80 per year

I also assume that my insurance will be $250

rent income: $1,500 per month.(currently occupied) $18,000 per year

So before tax, my yearly net income(cash flow) is $3,491.20

Is my calculation correct?  If it is correct, is it a good investment?

 

Many thanks!

所有跟帖： 

• sorry, should be: Is the following investment property worTH to -MaJiaY- ♀ (0 bytes) () 11/18/2011 postreply 17:10:07

• Dummy's rule of thumb: if annual rent is less than 13% of proper -borisg- ♀ (732 bytes) () 11/18/2011 postreply 17:41:28

• Thank you so much for your answer! however -majiaY- ♀ (327 bytes) () 11/18/2011 postreply 18:20:12

• under 13% (gross, not net) is not good investment -borisg- ♀ (0 bytes) () 11/18/2011 postreply 18:24:53