Is there a rule of thumb for percent profit on a monthly basis (after mortgage, home owners assoc, etc. are payed)?
2007-05-22 15:28:37 · 2 answers · asked by Johnny H 1 in Business & Finance ➔ Renting & Real Estate
No, rates are entirely dependent upon the local market.
Think of it this way. If you found the prop for cheap, you would still want to maximize your return.
Your renter doesn't give a care whether the prop is payed off or that you are over your eyeballs in debt. All that they care about is that you have a space to rent that they would like to rent it.
2007-05-22 15:31:41 · answer #1 · answered by lovingdaddyof2 4 · 0⤊ 0⤋
You need to understand that your monthly rental charge has nothing to do with what you owe, and has everything to do with the current rental market where you own the property.
It all depends on what you paid for the property and your expenses. Do NOT expect that you will be able to charge a percentage over your costs as a profit. If your expenses amount to $1500 a month, as an example, and the current rental market only pays about $1000 a month for your property, be prepared to swallow about $500 per month.
2007-05-22 15:34:06 · answer #2 · answered by acermill 7 · 0⤊ 0⤋