How much do people pay per square foot? Any people actually do this for a living?
2007-03-17 17:36:17 · 6 answers · asked by junior 1 in Business & Finance ➔ Renting & Real Estate
A good rule of thumb is $1 per square foot per month. And you want an annual cash yield of 5% or more. That's annual income divided by purchase price >= 5%. Good luck.
2007-03-17 17:44:28 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Those are good questions ...
Unfortunately, there is no point-blank answer.
It all depends. I'm sure you've heard the saying: "location, location, location", that's what will determine whether or not you can make "good" money, how much you should expect to pay per square foot, etc ...
Probably the best way to come to an understanding of associated costs is to seek the help of a reputable Real Estate agent in your area.
The other thing to consider is your financing to purchase the building, and do you plan to incorporate in order to qualify for additional tax incentives/advantages ...
For all of these things, you should seek the personal advice of professionals (CPA, Lawyer, Real Estate Agent, Mortgage Originator, etc).
Hope this at least points you in the right direction. Good Luck.
- sam
2007-03-18 01:25:11 · answer #2 · answered by pabonsam 1 · 0⤊ 0⤋
As long as the rent is more than your expenses, i.e. insurance, repairs, utilities, vacancies etc. etc...
By general rule of thumb, always deduct the following from your gross rental income:
5% -10%: for vacancy
8% - for repairs
Also, find out how much the previous utility and insurance cost.
Depending on your location, a good median price to charge is $1.00 / sq ft. Providing you aren't in Los Angeles. :)
2007-03-18 00:45:12 · answer #3 · answered by themligroup_com 2 · 0⤊ 0⤋
As they say in the real estate business:" it's location, location, location" . IIncome depends on location and the condition of the building itself. Do people make a living this way?.....absolutely. But your income is dependent on the amount of rent you receive...also must deduct expenses and taxes....but like other businesses, most expenses are tax deductable. Make yourself aware of laws for landlords applicable in your area also. My parents invested in rentable real estate while they both were working...and then they retired early....and now they live largely on the rental property income.
2007-03-18 00:46:43 · answer #4 · answered by tlbrown42000 6 · 0⤊ 0⤋
Depends on occupancy and rental rate per sq.ft..
Location and exclusiveness determines rental rates.
2007-03-18 00:44:08 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Only if you have the time to see that whomever rents it is not abusing it, thereby costing you more in repairs.
2007-03-18 00:44:50 · answer #6 · answered by a_phantoms_rose 7 · 0⤊ 0⤋