How many units do you own, and how much do you take home?

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  • Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
    6y

    Any actual numbers you get for this thread will not be useful.  Say someone 'owns' a 100 unit apartment building with ten other investors, does that count as 100 units for each of the ten investors?  Or should each investor say they have 10 units?  What if its one house with 4 investors, is that 1/4 of a house?

    How long have they been investing?  Does that count as ten years dreaming, learning and wishing, plus 1 year doing as 11 years or 1 year?  For those who are older, does the pre crash years count when you had investments before a crash, everything was lost and they started over?  If one invested part time or full time, should there be an adjustment on how to count those part time years?

    For net income, is that net income based off of actual expenses, or should putting aside money for CAP EX, taxes, insurance, maintenance be considered, even if the expense has not hit yet? What about depreciation, should one follow the tax guidance and estimate the depreciation expense, then add back in 25% for the cost of the recapture for taxes upon sale? Or just ignore depreciation because most people do when looking for profit.

    This might be helpful in your analysis :

    In general, for financed properties many people look for $100 a door after expenses for 'profit', excluding depreciation consideration.  For non-financed properties people look at more like $500-1000 a door.  Divide those numbers by the number of investors for that property to get an individual investor's 'profit'.

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