It’s your numbers, silly. With income property it’s all about the return numbers. But to determine the return numbers you need to know as closely as possible what the cost of the property is. Items that go in to cost?
- Cost of rental property.
- Closing costs.
- Capital improvement costs.
- Ongoing maintenance costs.
- Advertising, marketing and vacancy.
- Depreciating costs of big items like ac/furnace, roof, foundation, carpeting.
- Property management.
That’s not an all inclusive list but should get you to thinking. Which were you already forgetting? If list all the variables and add them up and then divide by realistic expected income then you should have your income property numbers. Are they good? Bad? Now is the time to evaluate. Before you buy. Not after.