Monthly, quarterly, yearly cost of ownership

San Francisco, CA · Member since 2017 · 35 posts · 42 votes

Hi,

I am slowly learning to analyze deals and I have a few markets picked out to research. So, when I first decided on multifamily properties I figured I'd be making bank and pay a PMC to do the heavy lifting concerning maintenance, resident calls, and vetting potential resident to rent to. As I read more I'm starting to ask myself how much of the rent will I actually get to call profit? What is the general cost of ownership month to month? Insurance, taxes, maintenance cost, unit sitting empty, eviction, renovation. Is there a diagram that shows the cycle of cost and resident from move-in to, moving-out?

Mike

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Seth McGatheyBusiness Member

Real Estate Agent · Milwaukee WI · Member since 2024 · 321 posts · 255 votes

Most likely for your first few years you will not make much profit from your cashflow. Most of your benefits are likely to come from the appreciation and tax benefits. If you invest in a stronger cashflow area like the Midwest, you can maybe make $100-600 cashflow depending on your down payment, interest rate, and rents. If you have someone else manage it, then shave some of that off.

I highly recommend people make their first deal a house hack if feasible. It is, in my opinion, the safest and easiest way to get into real estate and ease yourself into being a landlord. If you can BRRRR that property, even better.

Even if you can't house hack, I recommend going local first if possible, so you can self manage it and learn the ins and outs of being a landlord/property manager.

If you can't do either in your market, then obviously doing really good research and building a good team in the market you choose is very important.

If you decide to look into the Milwaukee market, feel free to reach out for help. I am an agent and I bc estor here myself and can also help you out a team together.

Best of luck!

[email protected]708-297-0996

Seth McGathey - Shorewest Realtor4.912 Reviews

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Seth McGatheyBusiness Member
Real Estate Agent · Milwaukee WI · Member since 2024 · 321 posts · 255 votes
1y
Most likely for your first few years you will not make much profit from your cashflow. Most of your benefits are likely to come from the appreciation and tax benefits. If you invest in a stronger cashflow area like the Midwest, you can maybe make $100-600 cashflow depending on your down payment, interest rate, and rents. If you have someone else manage it, then shave some of that off.

I highly recommend people make their first deal a house hack if feasible. It is, in my opinion, the safest and easiest way to get into real estate and ease yourself into being a landlord. If you can BRRRR that property, even better.

Even if you can't house hack, I recommend going local first if possible, so you can self manage it and learn the ins and outs of being a landlord/property manager.

If you can't do either in your market, then obviously doing really good research and building a good team in the market you choose is very important.

If you decide to look into the Milwaukee market, feel free to reach out for help. I am an agent and I bc estor here myself and can also help you out a team together.

Best of luck!
[email protected]708-297-0996
Seth McGathey - Shorewest Realtor4.912 Reviews
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Charles ClarkBusiness Member
Real Estate Broker · Milwaukee, WI · Member since 2020 · 307 posts · 209 votes
1y
@Mike Schelske
Great questions — it's smart to think beyond just cash flow projections. On average, expect around 30–50% of your rental income to go toward expenses like property management, maintenance, taxes, insurance, and vacancy. The rest is your potential profit. I’d be happy to share a simple diagram or breakdown showing the typical cost and resident cycle from move-in to move-out. Just let me know!

[email protected]414-719-6090
Raise the Standard RE LLC55 Reviews
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Arman AhmedPro Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 975 votes
1y
@Mike Schelske
Great question, Mike! A common rule of thumb is to expect 30–50% of rent to go toward expenses before your mortgage — things like management (8–10%), maintenance, vacancy, taxes, and insurance.

I work with investors in Columbus, OH and use deal analyzers that break this down clearly — happy to share a template or resource that maps out the full cost cycle from move-in to move-out!
[email protected]614-418-6081
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Kerlous TadresBusiness Member
Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
1y
Hey Mike, you're asking the right questions. After factoring in things like property management (8-12%), taxes, insurance, maintenance, and potential vacancies, you can expect to keep about 40-50% of the rent as profit. Plus, you'll need to plan for repairs and turnover costs.

Think of it like this: tenant moves in, you cover the basics (maintenance, rent collection), then they move out and you prep for the next one. Focusing on areas with strong rental demand and growth potential will help boost your profits.

[email protected]614-490-1163
Kerlous Tadres | Reafco Real Estate542 Reviews
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