To the Landlords

[Zarathu]

I had one.... for four years. Return? Heck we never even broke even. We needed to rent the property so that we could pay the mortgage and the taxes. It is our retirement house. For the first 2 years, the costs that we had to pay over the rent was nearly 9,000 bucks, so we lost $9000 each for the first 2 years. After we paid the mortgage down a bit in the end of the 2nd year, the rent more closely approximated our mortgage and taxes, but we still lost more than $2000. Even after depreciation on our income tax.

[volk2k]

What formulas are you using to calculate your average returns?

I see so many ways to do it, but am not sure what the "right" or "most commonly used" way to do it is.

[TEnterprises]

Originally Posted by volk2k

What formulas are you using to calculate your average returns?

I see so many ways to do it, but am not sure what the "right" or "most commonly used" way to do it is.

I'm assuming they're using:

(Total Rent-(Total Mortgage Payment(including taxes, insurance)+Advertising and other expenses))/(Downpayment + Closing Costs)

Per year, of course

[TEnterprises]

Originally Posted by Zarathu

I had one.... for four years. Return? Heck we never even broke even. We needed to rent the property so that we could pay the mortgage and the taxes. It is our retirement house. For the first 2 years, the costs that we had to pay over the rent was nearly 9,000 bucks, so we lost $9000 each for the first 2 years. After we paid the mortgage down a bit in the end of the 2nd year, the rent more closely approximated our mortgage and taxes, but we still lost more than $2000. Even after depreciation on our income tax.

When did you buy, out of curiosity?

[tworent]

Originally Posted by Lauriedeee

Let me guess... you have two? two rentals?

More then two but Some times to many and some times not