Rachel M Vann - GET THE MOST MONEY FOR YOUR REAL ESTATE INVESTMENT

property taxes, utilities not paid by renters (if you as the owner will be covering any), maintenance, repairs, and planned vacancy. Remember to subtract the monthly percentage that the management company will charge you as well. What do all of these add up to? Is the amount your renters will pay greater than all these expenses? Obviously you will use your EXACT numbers for the property you are analyzing, but for learning we will use the example below:

123 Example Street, Little Rock, Arkansas

Potential Rent: $1,000 Property Management Fee: -$100 (10%) Mortgage Payment: payment/interest rate/amortization period) Insurance:

-$300.10 (calculate based on down

-$70 (get a quote, but in my city,

its typically very close to what the property taxes are) Property Taxes:

-$70 (pull for free from county

data) Utilities:

0 (owner is not covering

expenses in this example) Maintenance:

-$100 (10%) -$100 (10%) -$50 (5%)

Repairs: Vacancy:

Net Operating Income: $209.90 This is the amount left after expenses.

Tip : Spend a little more time researching your actual market as to learn what percentage to run your expenses at. You can always ask your property management company what percentages they suggest you run your numbers at for your location. The above example is close to what my personal portfolio runs at, but this

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