The rent does not cover all

[Ricardo Lemus]

Hi there,

You guys probably went thru some of my post already and even help me with some experiences - Thanks a lot :)

This time, after 6 months on this, I think part of my brain is saying that somehow I am in the right direction, and the other part is saying something is going on with the rent price I have set for my properties. After 6 months I have two properties and since day 1 they have been rented.

However, making some numbers and organizing the 2025 budget I am not sure what to think about my first step on this journey.

The rent covers the mortgages (10 year loan both) however I have to take out of my pocket some % to cover HOA and management fee. Roughly is $400 for both properties.

What do you think, was a good move to get these properties? should I adjust the rent, considering I know the same floor plan could be higher?

Thanks as always.

RL

[Theresa Harris]

HOA will eat up a lot of your money. Also instead of doing a 10 year mortgage, you should have done a 25 or 30 year mortgage. The longer term loans would have lowered your monthly payments and decreased the costs.

As for rent, each year you need to look at rents in the area to decide how much you will be increasing the rent by.  Also factor in if the rents jumped a lot and if that would lead to a vacancy, which will cost you more in the short term.  That doesn't mean you don't increase the rent, but adjust by how much you increase it.