Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

You are best off to raise the rent and give the tenant the option to stay.Also, I hear a lot on here that "rents should be", "the potential rents are"... make sure that you do your due diligence when calculating potential rents because most new owner OVER estimate them.

When calculating your return, bear in mind you'll most likely have to pay 100% in cash to make it work.

Head over to bank rate or and take a look at the mortgage calculators, plug in the numbers and get an idea of what the property needs to generate to satisfy the intended debt.You still have to underwrite the deal for the non-finance expenses as well(typically 40-50% of the gross rents). 

Before the income subject to UBIT is calculated you can depreciate and deduct expenses and losses on that portion of the income so generally it's not as bad as people think. 

I agree with you that calculating a reasonable average is the better strategy.

We have some of those calculators we plan to to add in 2025 for those who want it all-in-one.

Hello, I have a property that has an office above a detached garage. The office has an A/C window unit with drywall, carpet and electricity. Does that office count towards square footage of the property? Or do I need ...

Here's the breakdown of rental income and expense analysis:1.Annual Gross Income: $25,800 (Monthly rent of $2,150 x 12)2.Annual Expenses: $25,800 * 0.40 = $10,3203.Annual NOI: $25,800 - $10,320 = $15,4804.Annual Debt Service: $10,680 (Calculated previously using a mortgage calculator with a loan of $131,775, 7.25% interest, and a 30-year term)5.DSCR: $15,480 / $10,680 = 1.45 (approximately)

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.