What percent profit would you expect on portfolio 12 Units?

[Gerald Peters]

This portfolio consist of 11 single family homes and 1 garage apt, so 12 units total. Gross rents

are $9,100. Properties are mortgage free. Value 1.3 Million

Obvious expenses Taxes, Insurance,  allocating 12% to maintenance. How much income would you

be comfortable taking home on this portfolio, where it would remain self-sustaining?

In your area, what would you expect to put what in your pocket each month/year? Is $43,680 (40%) to

aggressive? Curious your general opinion...

[Edward B.]

Originally posted by @Gerald Peters:

This portfolio consist of 11 single family homes and 1 garage apt, so 12 units total. Gross rents

are $9,100. Properties are mortgage free. Value 1.3 Million

Back of the envelope math I would assume all expenses to be around 40%-60% depending on where you are and reasonable condition of the properties. So based off of that your numbers are on the conservative side. If it fell into what I expected them I would dig deeper to get a more accurate picture of what the expenses actually are.

Of course this is without debt service of any kind. And I would also point out that I would never pay anything even remotely close to $1.3 mil for $43k per year.