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Updated over 11 years ago,
What tax percentage should I factor into my equation?
Good morning dear BP members,
I am analyzing the below rental property deal in Florida:
Purchase Price : $ 50,000 (including closing, cleanup & rehab costs)
Amount Invested : $ 10,000 (with $40,000 Loan for 20 yrs @ 4%)
Est. Rent: $ 900
Running Costs:
Loan Principal: $ 167
Loan Int. & Fees: $ 87
Insurance: $ 75 (1.8% of property value)
Property Tax: $ 105 (2.5 % of property value)
Property Mngmt: $ 90 (10% of rental income)
Maint. & vacancy: $ 144 (16% of rental income)
Utilities & Upkeep: $ 0 (Paid by the tenant)
What tax percentage should I factor into my equation?
Are there any other running costs that I should be asking about?
Thank you.
Patrick