Rental Properties Aren't Cash Cows
Here are the real numbers
Welcome to this week’s issue The Un-Normal Investor. Each week, I publish one 5-minute read that’s written to make you a smarter real estate investor.
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From the outside looking in, most people’s perception of owning rental properties typically sounds something like this:
Buy a building. Move in a tenant. Collect a big check.
I wish it was this simple.
And I definitely wish the checks were larger.
Truth be told, rental properties have thin profit margins.
After debt service, overhead, and maintenance, you’re left with about about 5% - 15% of your top line gross income.
The bulk of your money is made on the back-end in the form of appreciation that continues to compound year over year.
Most people don’t discover this unspoken truth until they’re neck deep into their first transaction.
But I’m going to be your real estate whistle-blower.
In this piece, I’ll take you behind the scenes and give you a realistic look at the economics of owning rental properties.
We’re going to cover: top-line income, bottom-line profit, and long-term appreciation.
By the end of our time together, you’ll have a genuine grasp of how much money you can expect to make from your average rental property, and the two ways that you can drastically increase your cash-flow and equity growth.
Let’s get into it.
