I am trying to understand the rental market. I am hoping to purchase a house and then rent it out; so I'm trying to figure out how much I have to pay each month.
2006-07-17 11:21:29 · 10 answers · asked by Alex S 1 in Business & Finance ➔ Renting & Real Estate
The real estate investment books I have read recommend only purchasing a home if you can get at least 1 percent of the value in rent each month. Rents vary across the country. You should research how much certain types of homes in certain neighborhoods are renting for. (ie 3 bedroom home in North Minneapolis, MN is renting for $1,500 per month). After looking at a lot of these examples on-line and in the newspaper etc, then see if you can purchase a home for for $150,000 in that area ($1,500 a month is 1% of $150,000) If not, then you probably won't be making enough money on the house and should purchase it. I recommend the Rich Dad series of books if you are looking to invest. I would also go to your local library and check out a variety of real estate investment books. If you read a bunch of different opinions about landlording and rental incomes etc. you should have a pretty good idea about what you are getting into before you make your first purchase.
2006-07-17 11:30:08 · answer #1 · answered by Gwen 5 · 1⤊ 0⤋
2
2016-07-19 03:07:29 · answer #2 · answered by ? 3 · 0⤊ 0⤋
Several good answers here, another possibility is to talk to some management companies that you are considering buying, what they would charge and what rental rate they suggest. As others have mentioned, there is no set % for what you should charge, the market makes that determination for you. Check your classifieds. You might be able to offer a fully furnished home and rent out to corporations.
2006-07-17 11:41:14 · answer #3 · answered by underhillprop 2 · 0⤊ 0⤋
You have to take into consideration several things.
How much is the mortgage.
How much are the property taxes? (divide by 12)
How much is the insurance? (divide by 12)
if you can figure these out and break it down to a monthly expense that would give you a clearer pricture. If you want to make a profit, determine how much per month you want to make and tack that on. Then find out how much other houses in that area are renting for and if it's a reasonable price to ask.
Good luck :)
2006-07-17 20:13:30 · answer #4 · answered by Christine 3 · 0⤊ 0⤋
Take a look at rental properties in the area you will be renting from (like in the newspaper or call a local rental agency like a prospective client). Also, compare amenities and condition of the home.
2006-07-17 11:28:21 · answer #5 · answered by Chickadeedee 2 · 0⤊ 0⤋
You can charge as much rent as you want. Find out what other comparable rental properties are renting for in that area and charge around the same.
2006-07-17 11:25:39 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Approximately 115 to 120%. You must consider utilities and upkeep in the figure. The main gain in your program is equity in the property.
2006-07-17 11:25:25 · answer #7 · answered by DMR 4 · 0⤊ 0⤋
Rent-To-Own Homes - http://RentToOwnHome.uzaev.com/?sTuC
2016-07-12 13:44:46 · answer #8 · answered by Madalene 3 · 0⤊ 0⤋
At least 110% or more if you include utilities...
2006-07-17 11:24:55 · answer #9 · answered by JackJester 5 · 0⤊ 0⤋
i would say 85%
because my dad said that would be correct with everything included!
2006-07-17 11:34:39 · answer #10 · answered by Anonymous · 0⤊ 0⤋