RESIDENCE REALTY GROUP -INVESTORS
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rate of return

Remember to  add a property manager into the equation which is can be different for every company if you are not going to property management yourself.

Taxes and insurance will be higher.  This below is not a normal rate of
return!!!   Look for 8-10%.  As the prices climb the lower the
rate of return. 

On a larger unit like a 10 unit you will need
commercial insurance property agent. 

NUMBERS BREAKDOWN PER UNIT (one unit)

-Monthly Rental Rate-$750
-Annual Rental Rate-$9,000

Expenses
-Vacancy-5%-$450
-Maintenance-5% $450
-Taxes $504
-Insurance-$500

Total Expenses
$1904

                     
Net Operating Income (Annual rate minus Total
Expenses)=$7,096

Purchase
Price-$35,000


ROI (interest on your money) 20%=NOI  $7,096 divided by purchase price $35,000

Years to recoup your $35,000-$35,000 divided $7,096=4 years

Plus don't forget to add the property management fee.   Every company is different.  


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Copyright 2018 Residence Realty Group LLC, A  real estate company.
All  information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental.
Brokerage License #  H-76974  Georgia
Residence Realty Group
56 Perimeter Center E, Suite 150
Atlanta, GA 30346
​678-466-0320
  • Home
  • Services
  • About Us
  • Links
  • Rate of Return
  • Where do I begin?
  • Questions from a lender
  • Overseas investors taxed
  • Private Login
  • Contact
  • A Different Way to Purchase