I am interested in hearing what others are are able to realize for Net Income as a % of your gross revenue on rental properties. This would be net of all mgmt fees, repairs, taxes, insurance, etc.
I just analyzed the first full year income from my first SFH rental and ended with 76.8% net income. I have no mortgage and there is no HOA.
I feel like this is a good return on my money, given I use a management firm to manage all my properties
Curious to see if this return is in line what others see when using a mgmt company.
We tend to operate MF at between 20-30% of gross income...but this is a huge variable...safe play is to plug in 40% operating expenses...or even 50% if you have a property that is not stabilized. If you are buying a property that needs a full reno, your operating expenses may be 100% of income until you get it performing. There is no standard here...it really depends in asset class, location, condition, etc...
I haven't run numbers yet. All of mine where bought with cash except our vrbo lake house. I self manage. I have some that had no repairs and no turnovers so the only difference between gross and net is what I paid for taxes and insurance.