Talia, glad to hear you are thinking about real estate. As mentioned above, rent needs to cover your payments, management fees (shouldn’t be more than 10%), plus repairs and turnover. Your spread is quite healthy, so I would guess you would have positive cash flow, but you have to run the numbers. There is a major difference between owning a house you live in and owning a rental. When your tenant is paying your expenses, you get the benefit of leveraged appreciation. If you put down 25%, you will get 4x the return as you get 100% of the appreciation while only putting down 25% of the cash. This makes single-family houses a fantastic way to build wealth. The returns on a house you live in will mimic a savings account, whereas a rental house can make 20% or more annual returns for very little effort. This has allowed me to make far more money with single-family houses than if I had put the same money in index funds. Seven figures more. Best of luck, and I wouldn’t upgrade your housing too much until you have a solid asset base!