"Principal, Interest, Taxes & Insurance." These are the payments you make according to how your loan is structured with your bank & tax regulations. Don't forget to exceed the minimal insurance coverage on your policy!
The returns you earn will be in the form of rents you collect, or other income (parking, appliances, laundry, etc.). Minus the the expenses from the income & you have your Net Operating Income (NOI).
Property Management -
There will be a property management fee of 5%-8% of gross rents. There are also additional fees that will be charged for maintenance, grounds keeping & even un-expected emergencies (plumbing, electrical, etc.)
Success Factors -
Your success will depend greatly on the team that you put together to guide you from discovery through to management. The idea is to invest, build equity, maintain & upgrade. This takes time, often many years to achieve. Read further for other considerations.
Property Tax will be your largest expense followed by water & sewer expenses. Utilities will also be a top consideration because of the variables (single main property meter, multi-metered units, etc.).
Everyone likes Kitchen Upgrades
Click on images to view how our clients are renovating with today's design trends & a couple vintage design styles..
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