Net versus Gross Rental Income

[Cory Grolman]

I'm new to BiggerPockets and this is my first post, so if this inquiry is in the wrong section or if it's redundant, my apologies. 

I've got 11 rental properties in the Atlanta area with a monthly income of around $17k. But after accounting for taxes, repairs, maintenance, insurance, etc, I'm only netting around 50%. Is this good or bad? What is the "normal" ratio of net/gross that landlords of rental properties expect? 

[David M.]

@Cory Grolman

The potential appreciation in property would be compared to the broader stock market return.  Both are "speculative" and based on appreciation.  Cash flow would be better compared to the cd rates.

The bottom line is to compare it to YOUR alternative.  Yeah, if you are only a RE investor, then your choices are pretty limited.  If you are an "investor," then you are trying to maximize your returns on whatever you are investing, whether its real estate, the stock market, a business, etc.

Goodluck.