Hidden Landlord Expenses
Learning ALL of the expenses before deciding on buying a rental properties is very important. Many people believe that if they rent their property for $1000.00 per month and their mortgage is $950.00 per month that they are making $50.00 per month. There are lot of little expenses that add up and need to be accounted for. There is/are gas, legal expenses, repairs, vacancy, management fees, insurance, taxes and several more. These are very real expenses and will impact your bottom line. One of the best hacks I have ever read was the national average for rental property expenses. The range is between 45-50% of the principal and interest. This means that if your rent is $1000.00, you do not want your principal and interest to exceed $500.00. We have found that piece of information to be very valuable when buying properties to hold.
Ian Walsh
215.839.3271
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