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sasin

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Posts: 1
Reply with quote  #1 
Hello,

I am new to the rental business and I was wondering if there is a baseline rental income to mortgage cost ratio that people strive for, or a barometer of how good a job you're doing.

I'm considering offering my unit at a ratio of 4-3, whereby the rent is 133% of the mortgage payment.  Is this considered good or bad?  What are your experiences?
Jhieko

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Posts: 7
Reply with quote  #2 
I think that's too high, you might want to read this, here
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NoNonsenseLandlord

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Posts: 178
Reply with quote  #3 
Look for ROI, Return on Investment.  It depends on what you put into the property.

I look for 12-15% returns on my down payment, after all expenses and debt service.  In class B+ areas.  Include at least 5% of rents for vacancy, 10% for maintenance and 8% for management.

Never buy a property with less than 5% returns, the risk is not worth it.  It all depends on the neighborhood too.  Lower income neighborhoods require a higher return.

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jamhassan00

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Posts: 6
Reply with quote  #4 
i think this is high ratio
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BritneyR

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Reply with quote  #5 
It is a very high ratio. You can end up suffering losses. Please consult an expert before taking any decision.
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NoNonsenseLandlord

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Posts: 178
Reply with quote  #6 
Your mortgage and rents are two different things.  Rent at market.  Pay your mortgage, even if you are not rented.
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MannMortgageReno

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Posts: 5
Reply with quote  #7 
hello everyone

Our Nevada mortgage broker is committed to helping you achieve your financial goals. When you are financially secure, you are in a better place. And that's just where we want you to be.


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BritneyR

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Posts: 227
Reply with quote  #8 

The suggestion given by NoNonsenseLandlord is right.


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