Understanding what an income property costs on both a yearly and monthly basis are important considerations for the real estate investor. In addition, knowing the operating cost of each unit is important, as it helps determine the bare minimum rental rate. No one ever said owning income property was cheap! There are many expenses that need to be taken into account, such as:
- Mortgage payments
- Taxes
- Utilities (if included)
- Maintenance and repairs
- Management
- Insurance
- Legal and professional fees
