calculating cost: What Do Your Rentals Cost You?
- 04/08/09 12:59 AM
Understanding what an income property costs on both a yearly and monthly basis are important considerations for the real estate investor. In addition, knowing the operating cost of each unit is important, as it helps determine the bare minimum rental rate. No one ever said owning income property was cheap! There are many expenses that need to be taken into account, such as: Mortgage payments Taxes Utilities (if included) Maintenance and repairs Management Insurance Legal and professional fees Using a spreadsheet, an investor will lay out all of these costs for a year. Adding them together gives the investor a figure (2 comments)