Profit Margin for rental???

[Dave Kennedy]

I am wondering what is considered a "good" profit margin from a rental?

Its obvious you want to be making profit...the more the better. But is there a bench mark that expereinced and successful investors make? Are we looking at 10%, 20%...more?

Lets say your mortgage is :

$1200 a month + xxx insurance + xxx tax = Total per month.

I am not sure how much insurance or tax costs additionally per month lets just say it bring the total to $1500.

What kind of mark up are you looking for in order for that $1500 a month to be considered a "good" investment. Taking market appreciation and resale value out of the equation.

What would you charge for Rent a month if these were the #'s?

I'm just trying to dig around and gage these things. I am not in any property right now, just trying to under stand what makes the "numbers work".

Thanks for the input.

[N/A N/A]

In practice, though, you need to use these formulas the exact opposite way. You can't say, I paid X for a place, what should I charge for rent, because the market will determine what rent you can get. Instead, you need to say, this house will rent for Y, so what is the most I can offer to buy it.