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| Yes you would expect that. The way it was portrayed in the original thread was the increased rent cost was justified because of rising costs - however the largest single cost, mortgage, should be frozen for the life of the loan. Therefore for rent to be able to double justifiably, it seemed the costs of maintenance/taxes/insurance had to rise 4x while income and management fees would also double. I doubted that indirect expenses actually did much more than double (like everything else) so I wondered where the extra rent money was actually going.
Apparently the answer is you're expected to lose money the first X number of years you have a rental and only now after super inflation is a modest profit possible. | |
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Rental Income Breakdown and K Shaped Economy
