- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Coaching Changes
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Minimum monthly gross income on a rental property as a % of the purchase price?
Posted on 1/8/25 at 3:22 pm
Posted on 1/8/25 at 3:22 pm
The opinion of the resident rental property gurus is appreciated. I’ve read that as a rule of thumb, it should be 1-2% of the purchase price per month, but that seems like a whole lot more than I could ever get for a beachfront rental property in the Gulf Shores area. Seems like 5-8% annually is currently what is being generated on most things I’ve looked at.
This post was edited on 1/8/25 at 3:23 pm
4
Posted on 1/8/25 at 3:42 pm to auwaterfowler
1-2% of purchase price per month or it’s not worth it. Yes the prices have priced that out basically and that’s why the professionals now sell classes and talks instead of doing it anymore
Posted on 1/8/25 at 4:27 pm to auwaterfowler
At 2% you knocked it out of the park. Those deals are hard to find now.
I would not go lower than 1%.
I would not go lower than 1%.
Posted on 1/8/25 at 4:31 pm to tigerbacon
I don’t think that rule of thumb has ever worked for initial purchases. I think most people use it to judge whether they should keep their current house as rental when they want to upgrade based on remaining mortgage and equity v potential rental income.
It may work for a beachfront rental if you are willing to put 40%+ down. But from the previous threads, there’s too much variance in assessments, insurance, property views, and even floor levels that it’s never practical.
It may work for a beachfront rental if you are willing to put 40%+ down. But from the previous threads, there’s too much variance in assessments, insurance, property views, and even floor levels that it’s never practical.
Posted on 1/8/25 at 4:58 pm to lsuconnman
quote:
on’t think that rule of thumb has ever worked for initial purchases.
Wrong. 2% still exists today in the midwest. In 2009-2011 I was hitting 3% easy off the MLS.
Posted on 1/8/25 at 5:09 pm to I Love Bama
quote:
In 2009-2011 I was hitting 3% easy off the MLS.
I believe you but how were there renters at those prices?
Like how large was the pool of renters able to pay 2,400 a month to live in an 80k house?
I understand some people need flexibility that comes with renting vs owning, but is that flexibility really worth paying like 3-5x what a mortgage payment would be?
I understand the rule of thumb of 1% or more is the "goal", and maybe I'm wired differently that your average renter, but when I look at your average 200k-300k house I'd rather blow my brains out than pay 2k-3k a month to live there.
This post was edited on 1/8/25 at 5:17 pm
Posted on 1/8/25 at 5:23 pm to I Love Bama
2% lol what is this the 80s?
2% doesn’t exist anymore unless you’re blackrock that can borrow from the Fed at 0%. Which is how they want it.
If you want a beach house that you can make money on wait for a hurricane and go carpetbag
2% doesn’t exist anymore unless you’re blackrock that can borrow from the Fed at 0%. Which is how they want it.
If you want a beach house that you can make money on wait for a hurricane and go carpetbag
Posted on 1/8/25 at 6:02 pm to tigerbacon
Yeah 2% would be unreal in the Charleston area. But less than 1% is a risk.
Posted on 1/8/25 at 6:13 pm to JohnnyKilroy
quote:
maybe I'm wired differently that your average renter, but when I look at your average 200k-300k house I'd rather blow my brains out than pay 2k-3k a month to live there.
Sorry rentoid that’s the price and it doesn’t include the tip
Posted on 1/8/25 at 6:23 pm to JohnnyKilroy
quote:
Like how large was the pool of renters able to pay 2,400 a month to live in an 80k house?
I was buying houses like crazy for $20,000. I've sold off most of my portfolio but I still have a house that I bought for $8,000 that is worth $150,000 now.
I could rent those houses all day for $500-$700.
And these were not some kind of special deals I was finding, Literally on the MLS.
Posted on 1/8/25 at 7:12 pm to I Love Bama
quote:
I was buying houses like crazy for $20,000. I've sold off most of my portfolio but I still have a house that I bought for $8,000 that is worth $150,000 now. I could rent those houses all day for $500-$700.
Again I believe you but that just seems insane. A healthy downpayment was (less than) 2 months rent and the mortgage payment including taxes and insurance couldn’t have been more than 200/month lol.
Posted on 1/9/25 at 9:27 am to I Love Bama
quote:
And these were not some kind of special deals I was finding, Literally on the MLS.
Ai, social networks, and wholesale/lead generating software has completely changed the game in the last 2 years. They have wiped out the inventory. The tech savvy investor group can now scour an entire state in a few days time by doing no more than telling a program what they are looking for and in what area. If something is on Zillow, Realtor, or MLS than more than likely it is a dud as an investment.
Posted on 1/9/25 at 9:32 am to southside
(no message)
This post was edited on 2/7/25 at 10:50 am
Posted on 1/9/25 at 10:38 am to I Love Bama
you CAN get 2% maybe not at initial acquisition but over the years with the raising of rents. so many here are so ignorant on this. I have done it. All mine are between 1.5 and 2% RTV.
many guys now are stuck buying at .7 and .8. i see it all the time. I would never do that. 1% minimum RTV.
BTW i am about to sell all my portfolio as well now. offers are too good and the appreciation has been phenomenal. With these current properties it is time to exit.
many guys now are stuck buying at .7 and .8. i see it all the time. I would never do that. 1% minimum RTV.
BTW i am about to sell all my portfolio as well now. offers are too good and the appreciation has been phenomenal. With these current properties it is time to exit.
This post was edited on 1/9/25 at 11:16 am
Posted on 1/9/25 at 10:50 am to southside
quote:
If something is on Zillow, Realtor, or MLS than more than likely it is a dud as an investment.
just depends on the situation and timeline. but yes, Most Mine sell through a private broker who works for me to private investors for prime price.
Not those cheap arse wholesale vultures. Yes, they will call you and text you ferociously. Never waste your time with those clowns. They are looking for cheap deals. I basically blocked all their numbers using a special app. They will harass you off hours and on weekends. I used to cuss them all out or throw out ridiculous numbers thinking they would stop calling but they still call.
I will reiterate NEVER waste your time with them. Sell to a private investor list or put it on the MLS to sell to a family who wants a home.
This post was edited on 1/9/25 at 11:06 am
Posted on 1/9/25 at 10:53 am to auwaterfowler
quote:Beachfront? Sure, maybe you could do 8 gross - which would be less than 5 net...when the risk free rate is almost 5.
The opinion of the resident rental property gurus is appreciated. I’ve read that as a rule of thumb, it should be 1-2% of the purchase price per month, but that seems like a whole lot more than I could ever get for a beachfront rental property in the Gulf Shores area. Seems like 5-8% annually is currently what is being generated on most things I’ve looked at.
Posted on 1/9/25 at 10:54 am to auwaterfowler
10% annual gross is the goal.
Posted on 1/9/25 at 10:59 am to lsuconnman
quote:
The never ending texts asking if you’ll consider selling your property make certain the bones are picked clean from distressed properties before they ever see the market.
again, nobody with half a brain sells to those jackasses unless they are a motivated seller. see my posts above.
Posted on 1/9/25 at 11:09 am to Fat Bastard
quote:
again, nobody with half a brain sells to those jackasses unless they are a motivated seller. see my posts above.
Goes to show the MLS has effectively evolved from the first line of sale 20 years ago to Facebook marketplace.
Posted on 1/9/25 at 12:06 pm to lsuconnman
Think about this, stock market can easily give you 10% gains even if you went safe dividend investing. So on 200k, if you not bring in 20,000 a year ion rent your losing money on your investment
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News