Expenses
How much will it cost to operate an investment property?
There is no formula here. This will give you a sense of the basic costs and what to expect.
The expected property costs include:
Mortgage
City Taxes
Insurance
Utilities
Upkeep & Maintenence
Vacancy
Unexpected Costs can include things like a new roof, a busted sewer line, a housing authority inspection that requires you to do work or requested tenant improvements. When you have tenants and something breaks, often times you don’t have the luxury of living with it and fixing it later.
Don’t forget about Income Taxes. You will pay income tax on income received from a rental property just the same as you will pay it for income from a work source. You do get to write off certain expenses and depreciation.