Income Expectations - Posted by Todd

import · August 24, 2009, 2:21pm

Posted by Ari Kumpis on August 24, 2009 at 14:48:46:

Based on an annual performance, I recommend using at least an 8% vacancy, which is assuming your rental will be occupied 10 months out of the year. It depends on where it is located. Some people use 10%. As far as maintenance, I suggest using 3% of the gross income.

import · August 24, 2009, 2:21pm

Posted by Todd on August 24, 2009 at 14:21:11:

I’m new to the landlord business and I’m trying to set a reasonable expectation for a return…What % of return should I shoot for?

I’m buying my properties with cash so I have no debt service, I know my insurance, taxes, and rehab, but what % of rent should I allocate each month for maintenance and vacancies?

Thanks for you input.