Income off single family rental

[James Lucero]

I’ve been a part of the forum for a few years now. Deviated from pursuing this and ended up buying a house here in North NJ, is there an avg return on single family rentals? I was planning on just selling the property, the past year or so my area has gone up in value if I sold the property I would’ve probably walked away with 100k after fees etc. I only bought if 3.5 years ago and invested 20k to spruce it up.

This last weekend as I was getting ready to call the realtor and tell her we were ready to put it on the market but then I couldn’t think of what I would do with that money right now, returns on my portfolio are around 7% but I wouldn’t be putting it all into the market and didn’t want to be making no interest off my money.

Long story short I posted it for rent this last weekend, thought I'd give it a shot. This was Saturday morning, by the afternoon I had gotten 12-15 people that wanted to view the house. I set up various appointments the next day every person that came wanted to put a deposit down. It ended up getting into a bidding war (I had only priced to make my mortgage payment and a $295/month profit. It ended up in a little bidding war and I ended up renting it where I'm walking away with $642 profit monthly and it'll increase by $271 when my PMI falls off in less than $10K.

I know I have to budget for repairs and unforeseen issues but furnace and Ac is all new I expect minimal problems and the tenants is taking care of all the maintenance like the lawn and small things. So is that a normal margin for profit? I think I remember reading years back the the avg return per unit was around $200 but didn’t know if that was just for multi family. Thanks