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Updated about 2 years ago on . Most recent reply
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Net annual cashflow
is there any net annual cashflow percentage considered healthy for long term rentals? I am pocketing 40% from all my properties and wondering if that is average or if I need to pay more attention to expenses .
Thanks
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There is far too much variation in what people call "cashflow" to have a standardized profit margin here, but in general I would say that if you have accounted for industry standard and market specific vacancy, repairs, maintenance, management, taxes and insurance and you are profiting 40% after debt you're sittin' pretty!
If the 40% is pre-debt service then you might be running too lean.