All Forum Posts by: Irene Morgovsky

Yes, the management cost is between 15 and 20%. Some are even charging 30% and making it sound like its warranted. They're not the ones who sweated blood into the place, so no offense to management companies, but I can't see going above 10% or 15% at most, assuming nothing major happens etc.

I will look into those calculators, thanks, good idea.

Hello. This is my first post, and I'm just starting out in real estate. Please be patient if I am wrong in any of my assumptions.

I own a home in Rotonda West, FL. HOA, no homestead exemption, because my primary residence is in PA.

I am considering renting it out, but the math is not adding up. During Covid, the home could have easily went for $1 million. Right now, it can probably go for $700,000.

Summer renting is tough, because people know that the heat is no joke, and it doesn't seem like there is much demand during the summer months.

My elementary math is telling me that I can earn 1.82% on my $700K. That's terrible, considering I can get a CD for 4% for 10 years, or an annuity at 6% for 10 years.

Management companies want 20%, and property taxes and home insurance keep rising, considering I have no homestead exemption, so I am capped at 10%, not at 3%, and home insurance can do what it wants.

Could someone please tell me where I am wrong, because in this case, it does not seem that this real estate is a good investment at all. I've owned this home for a long time, but in the beginning, property tax and home insurance, were way lower. And over the years, pool maintenance, lawn maintenance and other such expenses, just kept going up.

I got the rent numbers from looking at comps, and this assumes I have a tenant 100% of the year, which is probably way optimistic.

Please let me know what you think. And thank you in advance.