Quote:
Originally Posted by Toymeister
The ideal number for rentals is 1% of the home's value per month. In TV it is above 50% of that, but below .75%
You, the owner, can't disassociate your name from utilities billed by TV: amenities, water, sewer, taxes. You can market your rent at $xxxx + amenities to get it closer to 1%.
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if you are getting 1% of value per month then you are getting a 12% annual capitalization rate. You are not likely to get that on an full 12 month lease. Nice try though I think 7-8% cap rate is likely more realistic. You might get 12% on a full seasonal depending on what you throw in.