2007-08-28 13:25:12 · 4 answers · asked by Madmen22 1 in Business & Finance ➔ Renting & Real Estate
My rule of thumb is 1/2 % of the value per month. so $450
(however cashflow positive is nice too)
2007-08-28 13:35:55 · answer #1 · answered by thevoiceofreason2b 5 · 0⤊ 0⤋
The answers given so far are nice but completely off base. It does not matter how much you paid for the property nor what your operating expenses (taxes, HOA, insurance) are.
If you had paid only $80k for the property, would you lower your rent in order to help out renters? If you had paid $95,000, would renters be willing to pay you more rent to help you cover your expenses? Of course not.
What matters is the market in your area! The proper way to determine the rent is to compare your property to other similar rentals in the area.
A quick way to do this is using websites like craigslist, housingmaps, move, rent.com, etc. You can also contact property management firms and ask them to give an estimate of your property's rental value.
Good luck!
2007-09-01 20:00:04 · answer #2 · answered by Genki 3 · 0⤊ 0⤋
most likely equal to whatever th monthly cost of the mortgage, real estate taxes, insurance and condo fees are costing the owner, so he breaks even on cash flow
2007-08-28 20:30:08 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I would also check the paper/ads to see what other townhomes your size would rent for. I would say around $750.00.
2007-08-28 20:33:09 · answer #4 · answered by Kimmi 2 · 0⤊ 0⤋