Gross rent less expenses.

Typically, your stabilized operating expense ratio (Total Operating Expenses / Effective Gross Income) should be between 35% and 50%.

Most lenders but not all, should use the existing 2nd unit lease at 75% of gross for extra income to qualify on either loan types.

Hi guys,Quick question..I have W2 job and last year did around 85K gross from my job..Also in October last year I bought investment/rental property with 30% down..today my tax person told me-I owe the government $ 3,5K ...please keep in your mind compare to my coworkers I am paying crazy amount taxes during the year...I know each case is different and unique but is this even possible?

All told the property would be worth about 800k when its paid off.I can expect to get about $4,500 gross from the property with an NOI of $2,500 monthly (would be about $3,100 with inflation at that time).

This may be easy enough for most states and their relatively simple tax regimes, but states like California, New York, Texas, Pennsylvania, and a few others have some quirks to them.For example, California makes disregarded single-member LLCs file a tax return, pay an LLC tax four months into the tax year, and potentially pay an LLC fee six months into the tax year based on estimated gross receipts.  

I own 3 single families free and clear their not used for income (2 vacation homes and a primary) 1st year business  gross sales 600k.

By year 15 the mortgages should all be paid off and the properties will be worth $15 - $25 million or more and gross monthly rent receipts $80,000 - $100,000 per month or more.

So if they sign a 10-year lease, you're paid your % on the entire gross amount. ($4,000/month x 12 months x 10 years =$480,000 gross) Others may have their own opinion, but that's been my experience so far.

That’s exactly what it is - a third party cpa firm goes in and verifies if we say investors got X they got itThink of any mutual fund, when they publish there 1,3 and 10 year performance it’s not them doing it - it’s a third party that follows the same set of rulesIn speaking with this firm it was kind blowing how they noted some people calculate returns.Some will use depreciation in there analysis, some will go off costs per year and not at time of expense, some will note gross for entire fund not gross for investor or net for investorIt was very educational and informative.