How to Estimate Rent Cost
I am just starting out and doing research on to hopefully become more familiar with the ins and outs of rental property in my area in eastern NC. One question I did have that I find very relevant and a big determinant in choosing what property to purchase and that would be what to charge for rent and how to determine whether or not a particular property is worth purchasing based on its income.
I am primarily wondering how to best determine whether a particular single/multi family home would be a good candidate for being self-sufficient each month (outside of unforeseen maintenance & repairs) based on what rent is collected. I am not sure if I need to be shooting for a ratio or percentage of the total price of the home that would be a typical rule of thumb or not. But for example, if I am looking to buy a duplex for $130,000 and say the percentage of the total price that I need to be aiming for is 10%, I would need to be able to collect a monthly income of $1,300 from that property to make that property a good investment. Ten percent may not be close to the correct percentage, but has anyone had success in finding a ratio/percentage that works for them and that they would typically go by before considering a property to purchase?