[quote=danthedart]Historically the cost of operating a rental unit is 45%. So in order to rent out a home for a profit each month, 55% of rent needs to cover your mortgage plus taxes.
In otherwords, its very difficult for a SFR to be cash flow positive. [/quote]
Where is this “history?” 45%? 10% maybe 20%, but you would hard pressed to even find a single example of 45%. If you can find an example, you certainly wont find that to be the average. 10% for a repair fund and 10% for lost rent between renters and you should be fine in your calculations, if it’s less, great, but factoring a operating cost of 45% is silly. Even a mangement comapany that will handle escorw accounts for expenses, advertising, leasing, management and maintenance for complete hands off absentee owners does not charge 45%. Cite a source. please
