What most new landlords don't understand is that operating costs run 45% to 50% of the gross rents.

Throughout the United States operating expenses run 45% - 50% of gross rents.

This will be a go to programming when the seller wants to remember your telephone number.Side note, call the television operator and introduce yourself.

I’m a former Deloitte Touche CPA (Los Angeles office), spent three years as the GM of a property management company that owned and operated two mobile home parks and a good-size office building.

I think if the items were more the day to day operations stuff rather than “deal making” stuff.

If he is not on the title, then he does not receive any tax benefits with the losses generated by the rental real estate operation.

If you're talking about rentals, then you subtract the operating expenses and the mortgage payment from the gross rents to get cash flow.

The only problem is that you omitted nearly ALL of the operating expenses.

All things are relative with regards to any lease that is the so called "net" format vs those that are "gross" or "modified gross".The term net lease has been chopped up over the years to include "net - N", "double net - NN", or "triple net - NNN".N - generally refers to the actual property operational maintenance costs.NN - generally refers to the property maintenance and limited other costs, i.e. adding in insurance or RE taxes or some other limited set of items.NNN - generally refers to all associated property operational costs.For clarification a "net lease" means that the tenant is fully responsible for some or all of the property's operational items; On the other end of the spectrum is the "gross lease" which means that the owner is fully responsible for the operational items; "a modified gross lease" is a combination of the two and usually includes an expense stop for the tenant.Expense stop means the owner is responsible for all costs up to that point, i.e $3.75 per sf per year, and the tenant is responsible for the pro rata difference over that amount.

If you have ever read a standard note and trust deed used by mortgage lenders, I would bet a good attorney could find 20 things many home owners are breaching in their agreement on a regular basis… i.e. parking commercial vehicles, or operating a business from the premises...