We look at expenditures as, "Should we spend $85 for a mediocre dinner out or put it towards the mortgage??"

., expenses, vacancy and capital expenditures are no more than 40% of rent), then at a 10 GRM, your NOI is 6% of the price per year.

It also does not include capital expenditures.

I only wish we could profit as much from the expenditure of our taxes dollars as our government is poised to profit.

Others pay a property management company and use something closer to the 50% number.So, from the remaining 50-60% of gross rents, you have to pay your mortgage (principal & interest), and the remainder, if any, goes into your pocket.The 40-50% number supposedly accounts for capital expenditures over a long time period for buy-and-hold investment properties.

Since the home warranty is priced into the sales price, the tenant actually pays for it and it cover them with any large capital expenditures which could affect them making their payment.Like someone said here before, it is simple insurance.

Or doing a large capital expenditure like installing AC and then bring the rents up $100.00.

But receipts for capital expenditures have to be kept "forever".Something else that I did when I got more than 3 properties was to make a "cheat" sheet that stays right on top of my desk.

Would it be more economical to utilize the equity in his home to supplement his expenditures.

What kind of taxes and other expenditures am I looking into per year after having bought a house?