How Is My Return?

[Michael Goodman]

I own some rental properties in the Tampa, FL area. The homes were purchased for $100,000 - $140,000. The rents are between 1% to 1.2% of the purchase price ($1,000- $1600). The properties are all safe and secure neighborhoods, with some better than others.

The return is in a range between 5.5% and 6.5% (This is the Net Operating Income/(purchase price + rehab cost). I get the NOI from taking all the rental revenue and deducting property insurance, property taxes, HOA fee's, management, vacancy expense (5%-8%), maintenance (10%-20% of revenue)

The bonus of all of this is the appreciation of the properties, but I don't take that under consideration yet because at this point I am a buy and hold investor and I can't guarantee the the value in 5-10 years.

What is everyone's thought on this return number? Is it high? Is it low? Does it suck? All feedback is welcome. Thanks!