Want to purchase rental property but there is high operating cost

[Teresa Vu]

Hi Everyone,

I recently join BP to learn more about real estate investment (REI) and i am very excited that i found BP. I am very motivated to learn more about REI and any advice or tips are greatly appreciated. I am looking into buying a rental property but this is still very new to me. I am currently looking at random listing on various realtors website. I guess my concern is the operating cost, one listing i looked at had a very high operating cost, lets just say the total net income from rent equals 50k but the operating cost is 40k per year. Is this a huge sign of do not even consider the property. Also, i was wondering if anyone can point to good books or forum discussion on topic of starting out with rental property, tax deduction for rental property as well rental income that are taxable? I guess, i want to understand the math a bit more with regard to profits made and losses. Thank you for your time.