How Much Cash flow do you like to see for Condos?

[Mike D.]

I'm looking into condo investing in my area. If some of you wouldn't mind sharing, what is your typical cash flow that you see from your condominiums? Most of the rental grade condos in my area go for about $750/mo with the tenant paying all utilities. Most are in the $70,000 range. I'm calculating about 13% of the rent revenue left over each month. Is that in the ballpark?

$750 Rent

- $100 HOA Fee

-$100 Property Taxes

-$40 Insurance

-$311 (20% down on $70,000 purchase price, 25yr am.)

-$39 (annualized 5% vacancy)

-$65 (annualized supplies & repairs of $750)

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$95 per month or 13% of the income.