Makes sense and is perfectly understandable. Many people here actually let the renting be done by third party managing companies. Sure, that also costs you, but you can often save you quite some headaches. Even or especially if your tenants are friends of yours. Don't know the rates, but some even continue to pay you the rent if the tenant stops paying.
It’s hard enough to be cash flow positive with rental real estate for a single property. Especially when you consider the 75% occupancy rate that is considered the industry norm - at least when you go for a bank loan and need to count it as income - then you have the normal repair expenses and prepping for new tenants.
Then you add on the cost of a management company - 10% of rent + up to 50% of the first month’s rent. The only people who I know that can stay cash flow positive are those with no or a low mortgage and/or are very hands on with maintenance and repairs.
Comments
Makes sense and is perfectly understandable. Many people here actually let the renting be done by third party managing companies. Sure, that also costs you, but you can often save you quite some headaches. Even or especially if your tenants are friends of yours. Don't know the rates, but some even continue to pay you the rent if the tenant stops paying.
It’s hard enough to be cash flow positive with rental real estate for a single property. Especially when you consider the 75% occupancy rate that is considered the industry norm - at least when you go for a bank loan and need to count it as income - then you have the normal repair expenses and prepping for new tenants.
Then you add on the cost of a management company - 10% of rent + up to 50% of the first month’s rent. The only people who I know that can stay cash flow positive are those with no or a low mortgage and/or are very hands on with maintenance and repairs.