I remember an email you sent about calculating the amount of rent needed on a rental property to cover repairs, taxes, etc and make a profit or simply pay off the home loan. It was a formula. I can't find the email though. Do you remember this?
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I think you're referring to the 55% rule. Basically, plan on 45% of rent going toward expenses, not including mortgage P&I.
http://www.mdmag.com/physicians-money-digest/investing/dahle-5-rules-for-evaluating-an-investment-property?p=1
https://www.whitecoatinvestor.com/great-real-estate-investing-book/Helping those who wear the white coat get a fair shake on Wall Street since 2011
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If you are using apps or asking about formulas to make simple estimations before plunking down a significant amount of capital and potentially signing up to personally guarantee a real estate loan, maybe consider doing some more homework before buying a rental property. In all likelihood you have no idea what you are doing if that’s what you are relying on to analyze properties.
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There’s great tax treatment, the ability to do 1031 exchanges, and the potential for impressive returns over the long run. There can be excellent economies of scale once you have 20 units or more.
However, it can be a second job. A REIT won’t call you in the middle of the night with an overflowing toilet.
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