$10/hr * 40 hours/week * 50 weeks/yr -
15% = $17000/yr
Stay with your parents and live off of $300/month for food/gas/phone. That leaves you with $13,400. Save for two years, that's $26,800.
20% downpayment is typical for investment properties, allowing you to buy property with value of to $134,000.
Let's look for properties in
Pensacola.
And...
here we go:
Address: 5903 MITCHELL LN E
City: PENSACOLA
State: FL
Zip: 32526
Area: West Pensacola
County: ESCAMBIA
Price: $135,000
Listing #: 431459
Property Type: Single Family
Listing Type: Resale/New
Subdivision: NONE
Status: Active
Bedrooms: 3
Total Baths: 2
Full Baths: 1
Median rent for properties of that size in that area is $750/month
They're asking 135k, offer 130k, end up paying 136.5 after commission, downpayment of 26...here's a
mortgage calculatar, we'll sasume 7% intereest, and monthly payments work out to $692/month.
So, you pay $692 and rent for $750 for a positive cashflow of $58/month. That's plenty. But, let's be realistic and assume a 10% downtime on rentals, so over a year you're paying $8304 and collecting only $8100, for a more realistic net of -$17/month. Still reasonable. You can eat $17/month in exchange for an average of $675/month being paid towards your loan.
Checking
amortization, after two years your equity is $2189 plus your downpayment of 26k, so total equity after two years is $28189. I said 50k. So my estimate was off by quite a bit.
...but...
...also remember that since we assumed $300/month for living expenses, minus the additional average of $17/month losses on your rental, that leaves you with ~$1100/month leftover from your dayjob. So double your living expenses to $600/month and apply the remaining $800/month towards early payments on your loan, plug that into an
extra payment calculator gets you roughly $19k, plus the $26k downpayment for a total of $45,000 in equity after two years.