Rental Property Investment

land lording is a giant pain in the arse. I used to love it when I had good tenants. One bad one will ruin it.

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I'd appreciate any insight you can provide

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I base almost everything off of the cashflows. I won't do one that has negative cashflow...unless I'm absolutely convinced it's a distressed purchase with significant appreciation potential.

I assume:

- the low end of expected rent and with no rental growth over time
- the high end of expected vacancy (e.g. 1.5 months/year)
- the high end of maintenance (at least 1% of property value per year)
-the high end of required cap ex upon exit
- paying a full boat of property management expenses (8% of gross rents)
- a full boat of real estate agency fees upon exit

IF after going through all of that I find that my realized cash yield is at least 8%, then I look to proceed with the purchase.

I find that with markets as recovered as they have been since the crisis, it's hard to find houses that meet these parameters any longer.