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"A. A." <dont@spam.com> wrote in message
news:0roMf.18678$pE4.10680@trnddc04...
> I fully understand that. The reason for my question isn't
> really to set my expectation for how much I'll make per
> month, but to set a rental amount for my potential tenants.
> I have not bought the property yet, and there are several
> properties we are considering (myself and potential tenants).
> They are asking how much they will have to pay per month
> for each property. Is there a conservative rate that I can
> start with? I am thinking like %1.5 is conservative on average,
> but I could be wrong since I do not have much experience in
I think the answer is "whatever the market will bear," or something similar.
Just look in the classified ads in the papers or ask property managers what
rents you can expect to get in your city for comparable properties. Of
course, if you want to give these tenants a break because they are students
or friends, that is another question, and once you have found out the above,
you could always reduce it $100/month or so depending on your generosity.
But also do some planning as to what the rents will be after these tenants
have moved out, and what you will be able to sell the building for
eventually.
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Re: Real Estate Monthly Rate of Return
