the question of rental expenses
Hi all,
I am new to the US rental market and have a few questions.
The item expenses, to be deducted from the gross monthly rent in order to achieve the NOI/cap rate/net gain, etc. is for me the biggest obstacle when trying to decide on any investment.
Unfortunately, it is not often possible to arrive at a reliable figure/percentage, I have seen many vendors/operators give vastly different estimates.
As a general rule of thumb, I would be inclined to think that it could be anything from 30% (minimum) to 50% or over. Of course, it depends on many different factors (location, type of house, condition of house, quality of tenants, quality of property managers, etc).
What % is reasonable and achievable for you?
Thanks for any reply.