Recently started investing in real estate..
Hello all! I recently started investing in real estate in suburbs of Detroit. I purchased 2 properties so far, one for 70k and another one for $59k.
I'm an out of state investor, and I have an agent and a property manager (both same person). My long term goal is to generate $10k/month cash flow through rental income.
I financed both properties for 30 years, but here's the thing:
My first property is rented for $900/month and I was thinking it will be cash flowing $250/month after paying the mortgage, property taxes, insurance and %10 property management fees. However, my calculation didn't include %10 vacancy and %10 maintenance fees. If I did include those, my first house is cash flowing only $70/month.
I was thinking I got a good deal with the first house since I was cash flowing $250/month, but when I add in maintenance and the vacancy, it sounds like a bad deal ($70/month). What do you think?
If I own 30 SFHs, do I still need to include %10 maintenance fees and %10 vacancy for each house, or would it make sense to set aside $500/month for all of them?