Quote:
Originally Posted by kyleb350
I thought about doing this. How do you guys determine the rent you charge? (Mortgage payment + Assessment Fees + Property Tax + A bit extra)?
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Your location plays a huge role in the rent you can charge. For instance, if you took my condos and plopped them down somewhere else in town, I could never get the rents that I get in my prime location. Not only am I walking distance to campus, but there is a light rail and bus stop within a minute walk. With that being said, you need to know the rents charged by your competition. A good Realtor can help you out with that. Your equation is not a bad way to start. You always want to buy a place where you can make money, not just break even. Don't forget to include insurance in your equation as well as sales tax if your area charges that. I actually have to pay sales tax on all my rents every month. You also have to put a little away each month for repairs. However, the main item you need to make sure of is, can you carry the mortgage on your rental if it's not rented? If yes, how long can you afford to do so?