Posted by PBoone on April 12, 2002 at 24:53:27:
After taxes and insurance, turnover costs expect to lose money each year. The banks figure profit like this
Rental amount $500.00 x .75 = breakeven. Then deduct taxes and insurance pmts for profit.
If you are interested in working for minus monthly income I have plenty of work for you to do.
Pat
How much cash flow for a rental? - Posted by Darrell (AZ)
Posted by Darrell (AZ) on April 11, 2002 at 22:59:30:
I am thinking about buying a rental property (3 Bedroom, 1.5 bath) with conventional financing on a 30-year loan with 5% down for 55K.
I can rent for $500.00 per month. My payment should be around $480.00. Does this sound like a good investment? I have the cash to cover vacancies and repairs. Thanks in advance.
Re: How much cash flow for a rental? - Posted by Ron Coultas
Posted by Ron Coultas on April 12, 2002 at 20:07:22:
A 30 yr note at 5% would give you P&I of $280.49 on a 55k 5% down deal (although it is probably an adjustable rate mortgage). With renter insurance at $25 per month and property taxes at $50 per month you are only looking at $355.49 and a positive cash flow of $144.51 - that is a good return on this price range of a property. I don’t see where you came up with payment of 480.00 Based on the information you’ve given this is a good deal - make sure you do your due diligence and verify the numbers.