Quote:
Originally Posted by MindBomber
Could you provide a conservative cost break down similar to this for a rental property in Phoenix, please.
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Cost - $100K or so
Rental Revenue - $1K - 1,150
Mgmt fee (10%) - ($100-115)
Property Tax ($1K pa) - ($80-100)
Insurance ($600 pa) - ($50)
HOA - ($50)
Contingency - ($50)
Net income before tax - about $700 per month, or an 8.4% yield
but that's if you buy the right property - if you think you can just go down and buy any property and get that, you're joking yourself - people end up just blindly buying and get higher vacancy rates, higher required maintenance costs, lower rent on more expensive properties.
I would have to say, you send 100 people down to phoenix to buy a property, 80 of them won't be able to get conservative numbers like those, they'd come in closer to $500 a month (after considering vacancies, which for me is included in my contingency - most of my properties are 2+ yr leases, i know i won't get an increase in rent for 2 years, but the knowledge that good ppl are in my properties is more important right now)