Average profit per SFH... - Landlord Forum thread

Average profit per SFH... by Greg on April 16, 2012 @15:12

Just wondering what people are seeing for profits on SFH rentals in the last year or two.

I'm doing a lot better than I thought I would but I'd like to hear what most people are clearing (per month) in profit.

Thanks,
Greg in Phoenix

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Re: Average profit per SFH... by Anonymous on April 16, 2012 @15:14	[ Reply ]

NOYB.

Re: Average profit per SFH... by OK-LL on April 16, 2012 @15:33	[ Reply ]

Greg, the answer is going to have more to do with the purpose of the rental in a person's financial plan than anything else and will vary greatly. For instance, if I purchased a SFH with cash to generate immediate ongoing income, my answer is going to be a high figure (rent minus maintenance, taxes & insurance). If I purchase a property with a loan as a part of my future retirement planning, letting the tenants money pay the mortgage, my current monthly income will be low, with the idea that once paid off, it will rise significantly on that property. So what is your circumstance that you're looking for comparisons on? No point in comparing apples to oranges.

Re: Average profit per SFH... by Greg on April 16, 2012 @15:38	[ Reply ]

Assume a SFH that sold for 140k with a 30 year fixed mortgage. I put 25% down on all property purchases. What % are most people putting down for investment homes? I'm making roughly $500 per house/month. I origionally thought I'd clear around $300 a month but was very pessimistic about costs. Just trying to get a good idea on long term returns and it seems much higher than anticipated (a good thing). While all the numbers are great, I'm still not going to see any profit until I recoup the origional 25% down (about 7 years). Thanks for any feedback, Greg in Phoenix

Re: Average profit per SFH...

Re: Average profit per SFH... by K (FL) on April 16, 2012 @20:50	[ Reply ]

No profit since the first year, broke even the 2nd, taken a lose every month since for the last 4 years. The bank just wants more for it than what rentals in the area go for and since it's not a primary home, cannot refinance, cannot sell. Welcome to the money pit.

Re: Average profit per SFH... by LeisureSuitLara (Georgia) on April 16, 2012 @21:44	[ Reply ]

I bought my house in 2008. I'm just now raising the rent in order to make a tiny profit, I was out of work for a long time and was just happy to have a tenant who didn't call about every little thing and paid the rent on time (until recently). Now I'm back on my feet and realize it's time to make my investment work for me. I'm on a 2 year plan to raise the rent in another year and be making a good profit. I've been a bad landlord (too soft) so this site has been eye-opening.