Rental property

[John Weir]

Trying to figure out a good formula to use when buying a rental property? I know income-expenses. But what are some other expenses or things I should consider or look out for?

[Kerry Baird]

Off the top of my head...

Mortgage PITI, Home Owner's Association if applicable, liability insurance, lawn or garden service, pool service, water if owner pays, property manager.

Turnover expenses when a tenant leaves.  This could be paint, carpeting, garden work.

Things that break down over time, such as:  I have repaired or replaced fences that blew down, ceiling fans, sprinklers, air conditioning units and flooring.  The tenant drove through the garage door and she paid for that, once I found out.  I have a roof that is leaking and will soon be replaced.

Ideally, you set aside money to handle these expenses so they don't hit you over the head.  :D