You’d have to be an idiot to buy a house

[temeculaguy]

[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

[temeculaguy]

I spoke too soon, dan cited a source, I’ll have to look into it and let you know if crow is on the menu.

[temeculaguy]

I spoke too soon, dan cited a source, I’ll have to look into it and let you know if crow is on the menu.

[temeculaguy]

I spoke too soon, dan cited a source, I’ll have to look into it and let you know if crow is on the menu.

[temeculaguy]

I spoke too soon, dan cited a source, I’ll have to look into it and let you know if crow is on the menu.

[temeculaguy]

I spoke too soon, dan cited a source, I’ll have to look into it and let you know if crow is on the menu.

[danthedart]

We look at our own tax returns and like I already posted, those income-expense analysis reports from those national organizations that I already mentioned. You can find similar reports for local organizations too.

[danthedart]

We look at our own tax returns and like I already posted, those income-expense analysis reports from those national organizations that I already mentioned. You can find similar reports for local organizations too.

[danthedart]

We look at our own tax returns and like I already posted, those income-expense analysis reports from those national organizations that I already mentioned. You can find similar reports for local organizations too.

[danthedart]

We look at our own tax returns and like I already posted, those income-expense analysis reports from those national organizations that I already mentioned. You can find similar reports for local organizations too.

[danthedart]

We look at our own tax returns and like I already posted, those income-expense analysis reports from those national organizations that I already mentioned. You can find similar reports for local organizations too.

[temeculaguy]

Naw, I’m not buying it, 45% just for repair and vacancies of aprtments. Hope you got a screaming deal on the place if it was in knock down condition. My much smaller sample from my half dozen family owned rentals, runs under 20% and has been under that for 20 years, of which most are sfr’s in three so cal counties. They vary in return, a few have been sold and a few have been recently aquired but none come close to 45% operating, yet all are self managed, so the comparison may be moot. All of which are owned outright so it’s easy to see the operating cost since all of the income is income (unfortunately, they are all part of a trust and I get nothing monthly, hence my desire to build my own empire). If your family is paying 45% of the income in management costs and maintenance, i say you need to hire an auditor, something stinks in denmark.

[temeculaguy]

Naw, I’m not buying it, 45% just for repair and vacancies of aprtments. Hope you got a screaming deal on the place if it was in knock down condition. My much smaller sample from my half dozen family owned rentals, runs under 20% and has been under that for 20 years, of which most are sfr’s in three so cal counties. They vary in return, a few have been sold and a few have been recently aquired but none come close to 45% operating, yet all are self managed, so the comparison may be moot. All of which are owned outright so it’s easy to see the operating cost since all of the income is income (unfortunately, they are all part of a trust and I get nothing monthly, hence my desire to build my own empire). If your family is paying 45% of the income in management costs and maintenance, i say you need to hire an auditor, something stinks in denmark.

[temeculaguy]

Naw, I’m not buying it, 45% just for repair and vacancies of aprtments. Hope you got a screaming deal on the place if it was in knock down condition. My much smaller sample from my half dozen family owned rentals, runs under 20% and has been under that for 20 years, of which most are sfr’s in three so cal counties. They vary in return, a few have been sold and a few have been recently aquired but none come close to 45% operating, yet all are self managed, so the comparison may be moot. All of which are owned outright so it’s easy to see the operating cost since all of the income is income (unfortunately, they are all part of a trust and I get nothing monthly, hence my desire to build my own empire). If your family is paying 45% of the income in management costs and maintenance, i say you need to hire an auditor, something stinks in denmark.

[temeculaguy]

Naw, I’m not buying it, 45% just for repair and vacancies of aprtments. Hope you got a screaming deal on the place if it was in knock down condition. My much smaller sample from my half dozen family owned rentals, runs under 20% and has been under that for 20 years, of which most are sfr’s in three so cal counties. They vary in return, a few have been sold and a few have been recently aquired but none come close to 45% operating, yet all are self managed, so the comparison may be moot. All of which are owned outright so it’s easy to see the operating cost since all of the income is income (unfortunately, they are all part of a trust and I get nothing monthly, hence my desire to build my own empire). If your family is paying 45% of the income in management costs and maintenance, i say you need to hire an auditor, something stinks in denmark.

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