Point Pleasant, NJ · Member since 2014 · 21 posts · 1 vote
Is there any guideline or goal of how much a monthly profit anyone makes on 1 property?
I have a property worth 70k and rented for $990 and stick $400 a month in my pocket. I think thats pretty good (got a good deal on a shortsale) If anyone was to post how much they make I was always wondering.
Investor · Washington, DC · Member since 2014 · 49 posts · 21 votes
12y
I immediately remove a small portion of my monthly net cash flow for reserves, and put it in a separate reserve account, then I take whatever the income taxes will be and put that in a money market account. What's left is what really hits my pocket. I sleep better at night that way.
Real Estate Investor · Desoto, TX · Member since 2013 · 560 posts · 528 votes
12y
To piggyback on what Matthew Paul said. I have a property I paid $70K for and it rents for $1095 but I don't stick $400 a month in my pocket. In addition to PITI and other operating expenses, you need to factor in maintenance reserves, vacancy loss, etc which may not be actual expenses you are paying out of your pocket at this moment but will be at some point in the future. You need to have money set aside to cover this when it happens. As a result, I wouldn't look at is as $400 bucks in my pocket.
Investor · Washington, DC · Member since 2014 · 49 posts · 21 votes
12y
I immediately remove a small portion of my monthly net cash flow for reserves, and put it in a separate reserve account, then I take whatever the income taxes will be and put that in a money market account. What's left is what really hits my pocket. I sleep better at night that way.