Are these rent returns normal?

2 Replies

Hey guys. After reviewing some properties i believe I can get rented, after factoring in the mortgage I’m assuming I will only be profiting around $200. Is this pretty common? This is with minimum down (3.5%) and keeping rent close to comps in the area. Thanks!

@Jesse Jaramillo , 3.5% down? The only loan I'm aware of that uses that obscure percentage is an FHA Owner-Occupier Loan. [Why would an O-O be expecting cash profit per month too?]

But sure, many Investors would consider $200/m return on a very low amount invested as a no-brainer. Especially if they wisely sought out an bargain to begin with, and are able to Refinance say a year later to get all their deposit back anyway, so that their $200/m positive cash flow literally becomes: free money! [Who suggested that $200/m, clear, isn't sufficient?] Cheers...

Hey thank you. I just bought a house a few months ago with an fha loan and didn’t think about the different types of loans that would be different for investment properties. That’s why I’m asking questions! Appreciated.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you