“What is the calculation for monthly rental costs”
I suspect what he meant was “What is the calculation for monthly rental PRICE”
Price is set by the market. Demand sets price. Supply sets price.
At some equilibrium you find equilibrium price.
Price Demand is set by monthly household income, if you spend more
then 33% of gross income on rent, you starve.
now rental costs?
Those are set by Cap investment, interest, Taxes, insurance, and maintenance.
Fgure a 750K house, buy that with a 30 Year 6% mortgage,
okay $42K in interest, say $6K in amortization, say $21K in taxes,
and then $3K in insurance, so toss another $5K in maintenance in
so figure it’s running about $7K in monthly ops costs.
you arepaying $4K/month, you should jam the owner
down some more.
He’s already subsidizomg you, get more
