I'm posting this more for the newer landlords. You old timers already have your act together, know your numbers, and see the bigger picture.

So I ran a report showing income and expenses per property in quickbooks for last year. This report includes all expenses including the loan payments so I broke those homes out.

The homes with loans had expenses that ran from 36 to 77% Nice to know they are still cash flowing. Loans and a house that needs a bunch of repairs kills cash flow though. No surprise there.

The homes without loans had expenses that ran from 16% to 110%. One house had some extensive repairs needed, vacancy, and was the only one that did not cash flow for the year.

Of the two properties that were midterm, one had expenses of 44% and the other had an expense rate of 13%. Needless to say the unit that had a 44% expense rate I just converted back into long term rental. I guess the take away here is that when mid term works, it works really well. Don't be afraid to try a mid term rental. You can always convert it back to long term.

TOTAL expense percentage for all units was 40%.

I'd say that the units that are well maintained had low expenses but ever so often something comes up that requires significant input of funds. When the loans all get paid I think the overall expense ratio will hover around 33%.

One take away I want to share is that you have to raise the rents because when something breaks, it will significantly cut into your cash flow. The more units you have, the more secure you will be when something bad happens since the other units will care you through it. Your insurance and property tax costs will always be rising. Stay current with your rents.

Bonanza,

Good stuff! Thanks!

I'll tag on that in order to keep good income to expense ratios we need to increase rents at MINIMUM of the price increases on materials and labor.

If not, the margins we need quietly inch away.

Bonanza,

Good stuff! Thanks!

I'll tag on that in order to keep good income to expense ratios we need to increase rents at MINIMUM of the price increases on materials and labor.

If not, the margins we need quietly inch away.

Thank you, Bonanza.

The last couple of times that I have had vacancies I have had to lower the rent instead of being able to increase it in order to get them filled. They were very long vacancies as well. I believe there are several factors involved, mostly new construction and lots of it right where my rentals are. That said, I know that I could be to blame as well for some reason.

How do you increase rents in this situation?

I try and make each property pay for itself. All expenses paid, vacancies included and still CF.

Well I have a roof that I just replaced this year on a SFH and I am at -285% for the year.

Recently started tracking live as well as annually. This place has a larger loan against it but should have a 45.52% profit margin, if all goes right. This year it is projected to come in at -22.13%. The rent bump took place in January.

My deductible is at 4% of replacement cost, so I didn't even try to turn it in for hail damage.

In a perfect world my total profit margin for all combined places should be 68.93%. I still have a few increases to mail out this year and two places that will be getting rent bumps within the next couple months.

I just recently ran all of the numbers as percentages. It was an eye opener for sure. I have more units with mortgages than without. My numbers also include my storage buildings as well as the lease on my truck and the business office.

I realize I have a ways to go, but the numbers are helpful when you can actually look at them straight on.

Also I had to do all of this manually. I need to look into a fancy program that can just spit out the data I want whenever I think about asking.

*Disclaimer: These are the numbers for 2026, actual and perceived.

At purchase each house had to pay for itself. But as the inventory grew, carrying costs were spread across them all and it is unlikely that all units will need huge investments in the same year. Knock wood.

I remember a speaker at a Mr. LL conference said 10 paid-for houses was enough for a really nice life. We found that to be true. My goal after that was to get enough units to leave each kid 10 units of their own. We have met that goal - it's nice to have goals - and we have a few spares to cover extreme expenses of our own.

Those expenses seem low based on my experience if debt service is also included.

I like to do 5 year analysis on each property. Super easy to do on Quicken.

That covers the ups and downs, vacancies, basic maintenance, minor upgrades...

10 years is even better.

My first accountant taught me "Things you track get better".

Back when I used carpet I would plan on $100-200 per room per year to replace. Now it would be $200-300 per room per year.

And $200 shampoo every turnover.

LVP has saved me THOUSAND$$$!

6x6 - " How do you increase rents in this situation?"

There have been times I wanted more for the rental but it was like November and what I did was tell the new tenant I don't like winter vacancies so I did a November to April lease at a lower price, and then the next one April to April, I raised it to what I thought it should be.

Once people are in, they are reluctant to move. That said you have to pick and choose what level of rent your local market will tolerate.

plenty - That is the key, enough rentals to make it self sustaining. But even a few can make a big difference in your life. My buddy has 4 small houses. They are paid for and it supports his life style. He has no desire for more.

Ray - I think 40% is probably average for single family homes. I'd like it to be 33% expenses. Mentally I figure a l/3 expenses, 1/3 taxes, 1/3 profit. I'd have to see what the accountant thinks the profit is. Taxes seem to be a black box where any number could come out of it.

WMH - Yes my goal was 10 SFH. I'm a little beyond that and am happy with it. I'd like to pay off all the mortgages and live off the income.

Brad - I love your property hacks. They do help.

This has me rethinking the mortgage vs. paid off venture.

I have a couple places with higher rates. 7.25% at the moment. I had considered refinancing one to pay off the other, which would increase my CF.

Now I am wondering if just paying them off would be a better option? With the money spent I could not buy another place and increase my CF as much.

My last departing resident got paid an extra three hundred dollars for showing the place before they were out after I cleared the lead.

Pmh, I was under the impression that the new roof could all be depreciated the first year under the OBBB.

A quick search suggests it can not, which I see as odd because the barn I am putting up can all be depreciated in the first year, if we decide that is needed.

The best way to minimize the depreciation is to never do anything expensive on the place.

I know a lot of slumlords that live by that simple rule.