There's so much out there from people that have portfolios of 10, 20, 100, 200 properties and are doing this for a career. What about the girl or guy who has the money to do 1 single-family residential, with the hopes of having a few assets in the next 5 years adding to his wealth? I'm looking to skip the fluff marketing and get straight to the good educational material.
I recommend that you look at your return. Take your Annual rent less taxes, insurance, and maintenance costs. This should be 10% or more of your purchase price. After deducting your annual loan payments (less taxes & insurance), divide this cash flow by the down payment if you borrowed $. You should have a 20% Cash on Cash return. Visit https://www.entrepreneursreport.com/master_real_estate_financials/ for more details and an online calculator.
Answered 5 years ago
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