This definitely is missing property tax and insurance, as well as a bucket for maintenance cost, ex, property management (8-10% monthly estimate), vacancy (5-10% monthly estimate), and repairs (5-10% monthly estimate). These are all coming out of the bottom line. Especially if the assumption is that the property will be held for 30 years. For a lot of states, Texas for example, the property tax inflates with property prices, assessed every 2 years, so you can build in some calculation assumption with that.
Cash on cash yield from rent may not be great for the most part. But with leverage and tax savings, that is where real money is made in the long run in the rental game.
Cash on cash yield from rent may not be great for the most part. But with leverage and tax savings, that is where real money is made in the long run in the rental game.