I'm based in California and about to start my real estate salesperson course.While I'm getting licensed, I'm also really interested in learning how to break into real estate investing.

But if I were to break it down, I usually see taxes and insurance are up to 20% of the Effective Gross Rent (Rent less vacancy cost).

We’d strongly prefer to exit with at least a break-even outcome, or pivot to a hold strategy that preserves the capital and gives us another shot at resale in 2026 when market conditions might improve.Property OverviewAddress: 2326 Mark Trail, Decatur, GA 30032Purchase Price: $198,000 (Sept 2024)Financing: $248,900 Hard Money Loan (HML) — extended until Sept 23, 2025Monthly Holding Costs: $2,800All-in Costs (w/ agent fees, holding, rehab, staging, overages): $354,174Originally a 3 bed / 1 bath with a bonus room.

Under federal guidelines, specifically HUD Form 52641—the Housing Assistance Payments Contract—landlords have the right to collect late penalties from the public housing authority (PHA) if the initial HAP is not paid within a timely manner.Let’s break it down: once a Request for Tenancy Approval (RFTA/RTA) has been submitted, the unit has passed inspection, and the contract is executed, then the tenancy officially begins.

This isn't the sole factor but it certainly helps mitigate the risk for someone looking to break into the business.

If you’re jumping straight into a high-down LTR with break-even margins… you’re locking yourself in too early.

The prices of their neighbors property from a lower rate and higher buyer sentiment environment has been the hardest concept to break for them.

That’s fine — but it doesn’t change the math.We always run both approaches — using our spreadsheet to estimate every cost — and they lead to the same place: if you want to earn 12% to 15% of the ARV, you’ll end up paying about 75% of the ARV minus rehab.Fair warning: once you exceed 86% of the ARV minus rehab, you’ll likely break even — if you’re lucky.

I agree with all your points which shrink the margin; the way I see it is even if a deal does break even, we're still adding another property to our portfolio with tenants building up our equity and potentially some cashflow to trickle into that pile.

That kind of strategic guidance can make or break the guest experience and your bottom line.I believe a well-designed STR isn’t about buying pretty furniture, it’s about creating an experience that drives bookings and 5-star reviews.