A lot of lenders used to apply 35% for expenses, but in the last several years, the numbers for supplies, labor, utilities, taxes, etc… have increased significantly.Also take into account the age, occupancy and how has the property been maintained, this will affect the expenses too

The average increased from $326,908 in 2023 to $352,257 in 2024.

@Quan Pham have you investigated at all the potential increases in property taxes and home insurance (need to have landlord policy) and included them in your cashflow calcluations?

@Marcos De la CruzHave you ever appealed the property tax increases on your Dallas rental?

From the commercial side you have more ability to force appreciation by increasing the NOI. 

The time back will free up more time to increase your active income, or acquisition of more rentals to get you more cashflow (passively or actively).

Are you self managing or do you have a PM running it?

Capacity and Tolerance. 1) Capacity: how many people can you comfortably fit in the property, is there room to add more, or add more value to the tenants to increase rent.2) Tolerance: How many people are you comfortable living with, if there are vacancies are you able to handle that.House hacking is an amazing path to homeownership, and a nice low barrier to entry into self managing your properties.

However, my commission income is not shielded from self employment taxes.

I’m not confident on my calculations for ARV or Rehab cost and don’t want to get a property under contract if it’s not really a deal.