Real Estate Bubble

[dickmilde]

"10% net pretax with 1 or 2 months vacancy cushion to boot."

That's a great return if you can get it, the properties that I own don't do that well... more in the 7-9% range after all expenses but pre-tax. The property management in my area is between 10-20% of the gross rental each month.. For that they call the repair people for you and do the showing for new tenants etc. I think it's too high given what they provide. I don't mind showing and I can call the plumber as well as they can.

I have first hand knowledge of a property "manager" that charged the owner for a complete paint job and in reality her husband did some paint touch up... another reason I don't use them.

The most important thing in this market is to be sure that what ever you get into that you can survive difficult times. Don't put yourself into a position so that you have to have the rent to stay afloat. If you can survive with no rental income then you should be OK no matter what.