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We are looking at bidding \$120,000 for foreclosure. Comps are considerably higher (\$170k+) but it will need work. (Fortunately, mostly stuff I can do. We will need to put maybe \$12k in, probably less)

Here is my math.
-Taxes are accurate.
-Repairs are a guess for an average year.
-Insurance is a guesstimate.
-I worked backwards from a mortgage calculator site, putting in home prices & interest rates and seeing the resulting mortgage payment.

House rents for \$1200 a month AND assuming 10 months occupancy
\$12000 - \$3600 (tax) - \$900 (repairs) - \$1,000 (insurance)
\$6500 left for mortgage (\$6500/12 = \$542/month)
= Can't pay more than \$117,000

House rents for \$1200 a month AND assuming 11 months occupancy
\$13200 - \$3600 (tax) - \$900 (repairs) - \$1,000 (insurance)
\$7700 left for mortgage (\$7700/12 = \$642 month)
=Can't pay more than \$142,000

To be honest, we are not planning to go any higher than \$120k. But I just wondered about my numbers. Maybe (probably!) there is a lot I'm not seeing.

Molly