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Tag Archives: positive cash flow. commercial rental

Costs of Owning Rental Property

Cost of real estate in Southwest Colorado

Most people seeking early retirement or financial independence have toyed with the idea of owning rental property. I’m a firm believer that rental income can be a great source of income, especially if you buy a property that cash flows from the beginning. One of our goals is to have rental income that can cover our basic expenses within a decade so that we can choose to retire if we want. So far, Jim and I own one residential property and one commercial one. We have a different strategy with each, and I’ll share some of the costs of owning a rental property. Think About More Than the Mortgage, Taxes, and Insurance Most people think that if rent covers the mortgage, taxes, and insurance, you’re in the clear. I think this is a good place to start, but also know that you will have vacancies plus rental maintenance and repair costs along the way. So far, our residential rental has done really well this year, averaging $319 in positive cash flow per month after all expenses. Considering that we bought this property for under $70,000, this makes me very happy. We just had our first set of tenants move out, ...

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