Best answer

This is the simplest way to determine how much profit should you make on a rental property. The idea of the 1% rule is to have a $200,000 worth house rented for $2,000 a month. That is the basic rule that a lot of people,especially beginners,incorporate. That will lead to a12%revenue for a year.

People also ask

  • How much money do you make on your rental properties?

  • I make more than $100,000 a year from the cash flow on my rental properties after all expenses including mortgages, property management, maintenance, and vacancies. I now have 20 rental properties which are a mix of residential and commercial. I bought my first rental property in December of 2010 for $97k.

  • What is rental property profit?

  • What is Rental Property Profit? The profit from a rental property is the actual cash you have left over at the end of each month. It important to note that rental property profit is not the same thing as taxable net income.

  • How much do you have to invest to buy three rentals a year?

  • You do not have to invest $90,000 a year to buy three rentals a year because you can begin refinancing rental properties after you own them for a year and take cash out to invest in more rentals. You can also save the cash flow from your rental properties to buy more rental properties.

  • How much did you pay to buy your first rental property?

  • I bought my first rental property in December of 2010 for $97k. I started with residential properties but now buy almost all commercial, including a 68,000-square-foot strip mall in 2018. You cannot buy just any property and turn it into a rental if you want to make a lot of money.