Quote:
Originally Posted by BlueStarAirlines
Agree. There are several homes that are now up for sale in my village (close to Brownwood) that were owned by investors (close to the one year mark for new purchase). I was told by one that a landlord could still cover most of the annual costs, but the combination of lots of rentals, high interest rates, and increasing costs are making it very difficult. He made it sound like those that bought during\pre-COVID would do okay as homes were significantly cheaper and those without a mortgage.
I agree that I don't see how a landlord could cover mortgage + insurance + Property Mgr + utilities + CDD fees + maintenance buffer each and every month. If its a nice home in a good location you might break even for a few months, but its the longer slow season that will kill you....
|
Annual cost to maintain: 15K, break even rent = $1,250 per month annual lease. .
Annual cost to maintain: 20K, break even rent = $1,660 per month annual lease. .
Annual cost to maintain: 25K, break even rent = $2,083 per month annual lease. .
2021 Fair Market Rent in The Villages | RentData.org
however, this is where one of my original question is critical: target market?
very different rates based upon house, location and target market. .
retirees aren't looking for apartments in Wildwood,
working labor isn't looking for houses in TV (in general, there are always exceptions)
basic part of a start up business plan is the target market and expected income statement:
price per unit
volume of units sold
Gross revenue
cost per unit fixed/variable
Gross margin
annual fixed expenses
operating income