General prophet margin for rental ??

Question

What kind of profit should I be looking to make I'm currently looking at a two unit for 67,900 the units could be rented out for at least $600 a piece.

Claire Mahon · Answer

@Nathan G. I used to bigger pockets calculator and got 41 percent cash on cash

Claire Mahon · Answer

@Nathan G. Thank You ! It seems I have some research to do , 😁

Nathan Gesner · Answer

Take a look at this blog article.

Theresa Harris · Answer

@Claire Mahon  If you are getting $1100 from the rent and paying cash, you also have property taxes, insurance at a minimum.  You will also have repairs and  maintenance costs.  I wouldn't use Zillow, or any website, to estimate costs.  You need to use your real numbers.

Nathan Gesner · Answer

Vacancy, not "they can see"...

Nathan Gesner · Answer

@Claire Mahon you are not accounting for expenses like taxes, insurance, they can see, maintenance, capex, Property Management.

Claire Mahon · Answer

@Nathan G. If I'm doing the math correctly I would be looking at 66 percent I believe ? Estimate

Claire Mahon · Answer

@Theresa Harris

X

Zillow estimates costs at 272

Income potentially between 1100- 1200

Claire Mahon · Answer

@Christopher B. I'm completely confused , but I offered 47,900 there are 2 apartments potential rent of 650 a month minimum 550 ,

So income 1100

Zillow predicts expenses at 272 monthly .

My husband would maintain, there's a tenant that has 50 $ off his rent because he takes care of snow removal , lawn , I think garbage is taken care of by the town . This is my first rental venture

Nik S. · Answer

@Claire Mahon

If you can get 10% or better CoC (Cash on Cash), your doing good in this current market.