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All Forum Posts by: John Clark

John Clark has started 1 posts and replied 1 times.

Post: Texas House Rental - Annual Return?

John ClarkPosted
  • Posts 1
  • Votes 0

I have considered buying houses ($150-200K value) in Texas for rental income. However I'm not impressed with my expected annual return. If someone could help me with my analysis; it would be much appreciated. Below is the math (all in % of house value):


Rent: 12.0%
Taxes: -2.8%
Average Long-Term Maintenance & Repairs: -1.7%
House Insurance & HOA: -1.6%
Average Vacancy/FinderFees/Tenant Issues: -1.0%
Property Management: -0.8%
Total Average Annual Return: 4.1%

I have heard landlords making 10% (no leverage) and 20-30% (with leverage). What am I missing?