Does your calculation of annual returns on real estate factor in expenses such as maintenance, insurance, and property taxes? High tax rates might substantially affect the net yields.
Hey folks, I wonder how others handle surprises like property management fees in their yield calculations. Do you account for unforeseen repairs too? I’m curious about your strategies for balancing expected costs versus unexpected ones. Your insights would be great to discuss further!
i usually add a rough buffer for unexpected maintenence and tax hikes. i like to overestimate cost roughy so i don’t get caught off guard on the net yield calculation, even though its not perfect sometimes.