You guys are way underestimating the true costs of being a landlord, and are thus overestimating potential profits.
First, figure one month a year of vacancy, so take 8 1/2% off your revenues. It takes time to clean, fixup, then advertise for & find a tenant, then perhaps they cannot move in for a while once you’ve settled on one, etc. It really adds up.
What is your budget for major repairs, as broken down into a monthly figure? New roof soon? Water heater? Furnace? Painting all the exterior siding and trim? Perhaps new windows? The Mira Mesa houses are largely tired old places, at least the likely rental candidates. What about lawn maintenance and weeding? Figure $50 – 100 a month depending on size. BTW, tenants can’t/won’t do it, whatever they claim. There is also the value of your own time, gas, late-night calls for toilet stoppage, etc. And the fun really starts when you have to do an eviction.
I’ve rented out houses and apartments for many years, and the costs invariably exceed your expectations and the rent revenues per year always underperform. Only the appreciation in value has made it worthwhile.
