Updated about 7 years ago on . Most recent reply
Please help me analyze
I found a $50k house. I will put $10k down and that will make piti $350. The house rents for $650. Which means:
Total rent collected is $7800.
Total PITI is $4200.
The surplus is $3600
I need to deduct for vacant, cap ex, repairs etc
I have heard 50% and 40%. Which one do you guys use?
Do you deduct that percentage from the $7800 or from the $3600 surplus?