Investing in real estate has been, and will be a lucrative avenue for many individuals and companies. There are some key indices that you need to look at when purchasing a home, condo, or townhome to invest in. Speaking specifically about Fort Lauderdale Homes for Sale, you need to take into consideration all of the expenses of your investment to correctly determine your Net Rental Yield on your investment properties.
How to Figure Out Your Net Rental Yield:
Monthly Rental Amount $2,400.00
Percent of Year UnOccupied 5% (average)
Take out for Vacancy for Annual Cash In of $27,360.00
Annual Insurance Cost $1,200.00
Annual Taxes $3,800.00
Annual Repairs Budget $600.00
Percent of Rent Mgmt Fee of 6% (optional)
These expenses total to Annual Cash Out of $7,241.60
Income of $27,360 minus cost of $7,241.60= $20,118.40 rental income after expenses
Property Acquisition Cost $300,000.00
$20,118.40 divided by acquisition cost of $300,000 = Rental Yield of 7.%
If you have been toying with the idea of looking at Fort Lauderdale Luxury Homes to invest in, our team at Florida Exclusive Living can help. With our experience we can help you deliver high yields and sound investments for your future.