@resjudicata So. I have a rental property. Small two bed one bath single family home.
My mortgage including taxes and insurance is $575 a month.
My renter pays $875 a month. So I should profit $300 a month.
$3600 a year profit you say.
Here is how this year has gone.
Neighbors house caught on my fire. The fire department responded when my renter noticed the fire. The fire department cut down my 6’ privacy fence to fight the fire. It cost me $2000 to replace.
Now my profit is $1600 for the year.
Then the city marked my sidewalk and driveway saying they needed to be replaced due to cracks. Hire a guy to remove and replace. $2500 dollars.
Now my “profit” is -$900.
Then the AC stopped working. It was 90 degrees outside. Was going to take 3 days to come check out the unit. In the meantime I purchased a portable AC unit. $400.
Now my profit is -$1300.
The AC service call to replace the unit was $324 and it needed a new thermostat which cost $40.
Now my profit is -$1664.
Then the oven stopped working in the range. Needed a new oven. Found a nice one on craiglist for $150. Dropped it off and replaced the unit.
Now my profit is -$1814.
It’s only July. How much more money might I lose on this property? Who knows.
So please. Tell me about my profit this year? Obviously I won’t need new sidewalks next year. Hopefully the property next door doesn’t catch fire and cause me to lose the fence again. Hopefully the AC continues to work. Hopefully the fridge doesn’t go out. But who knows.
What the tenant knows though is her house is well taken care of. Her landlord is responsible and responsive and takes care of any and all issues to insure her and her family are comfortable.
This is the risk we take being landlords. Houses require upkeep and stuff breaks. It’s my job to make sure they get fixed. It’s the tenants job to pay their rent.