.✅ Indirect Expenses (Office Overhead, Admin, & Labor): Harder to allocate, but common methods include:2) Common Billing Methods🔹 % of Gross Rents – Many PMs charge 3-5% for admin overhead.🔹 Per-Unit Fee – Flat $10-$20 per unit/month for shared costs.🔹 Time Tracking – Track staff hours and bill properties proportionally.🔹 Software Tools – AppFolio, Buildium, Rent Manager allow bulk allocations.3) Best Practices✔ Use a Spreadsheet or Software – Track expenses by property before invoicing owners.✔ Be Transparent – Define billable vs. included costs in your PM agreement.✔ Avoid Surprises – Owners expect clarity on additional charges.

So if rent is $2k month, gross income needs to be $6k per month.

We have grossed $300k in revenue over the first 12 months of operation, at a ~50% profit margin.

Malibu allows it but requires a 15% "hotel tax" on the gross revenue.I would recommend looking out of state or underwrite the property as a long term rental in the event laws change.

I’ve been investing in Detroit for years and built my 12-door portfolio there, generating $16K/month in gross rents.

Pretty much all lenders in business to lend money will charge a service fee to the investors.. and take it out of the gross monthly payments..

Warning: This video is GROSS.

The $300 cashflow is a gross number though - you will invariably have expenses that will eat into this number.

However, in California, each LLC incurs an $800 annual franchise tax plus gross receipts fees if revenue exceeds $250,000, and property insurance may cost more.

(gross rents $4900; 8% PM; mortgage+insur+taxes = $3600/mo).