Zillow Advice: Investing - condo rental return and expenses http://www.zillow.com/advice-thread/condo-rental-return-and-expenses/442597/ Zillow Advice | Zillow Real Estate The question can only be ... http://www.zillow.com/advice-thread/condo-rental-return-and-expenses/442597/ The question can only be answered on a case by case basis with a specific property.&nbsp; Be careful with Condo investment.&nbsp; There are 1000's of condos and a lot of competition for rentals which drives rental income down.&nbsp; Consider Single Family homes in the suburbs.&nbsp; Less competition and higher returns.<br/><br/>Expenses on a condo vary dramatically depending on the condo maintenance fees and taxes.&nbsp; <br/><br/>Here is the calculation if you don't already know.<br/><br/>Purchase Price+Closing Costs+Rehab Expenses = Gross Purchase Price<br/><br/>Condo or HOA Maintenance, Taxes, Insurance,Property Management = Expenses<br/><br/>Income: Annual Gross Lease Amount<br/>&nbsp;<br/>Calculation: Annual Income - Annual Expenses/Gross Purchase price = Return on investment.&nbsp; If you finance, you have to include your interest in the expense category and your return will be only on the amount you invested, not the purchase price.<br/><br/>Every investor I work with has different criteria.&nbsp; Look at the property strictly from a cashflow/return basis.<br/><br/>Currently I have more money than I can spend on properties.&nbsp; Due to&nbsp;increased investor&nbsp;competition, it's really difficult to get properties at prices that make sense.&nbsp; A lot of investors are not educated in the local markets and buying properties for more than they are worth, not including rehab expenses.<br/><br/> Sun, 13 May 2012 16:05:00 GMT http://www.zillow.com/advice-thread/condo-rental-return-and-expenses/442597/ 2012-05-13T16:05:00Z Thank you guys it is much ... http://www.zillow.com/advice-thread/condo-rental-return-and-expenses/442597/ Thank you guys it is much appreciated, thanks for your time. I do understand that it is hard to be definitive with such a general question.&nbsp;&nbsp; Mon, 14 May 2012 01:19:00 GMT http://www.zillow.com/advice-thread/condo-rental-return-and-expenses/442597/ 2012-05-14T01:19:00Z There can be quite a difference ... http://www.zillow.com/advice-thread/condo-rental-return-and-expenses/442597/ There can be quite a difference from condo to condo.&nbsp; Your net return will be affected by a number of items.&nbsp; A couple that are quite variable are the HOA dues that are different for each complex, as well as the percentage a rental/property management company you choose charges.&nbsp; On site management can charge upwards of 50% of gross rents, others as low as 10-15%.&nbsp; You really need to work with a buyers agent that can help you locate the complexes that are the best investment. Sun, 13 May 2012 23:12:00 GMT http://www.zillow.com/advice-thread/condo-rental-return-and-expenses/442597/ 2012-05-13T23:12:00Z It would be best for you ... http://www.zillow.com/advice-thread/condo-rental-return-and-expenses/442597/ It would be best for you to contact a Realtor and have the agent explain to you the various options. Sun, 13 May 2012 18:14:00 GMT http://www.zillow.com/advice-thread/condo-rental-return-and-expenses/442597/ 2012-05-13T18:14:00Z Hi Investor,I am a realtor ... http://www.zillow.com/advice-thread/condo-rental-return-and-expenses/442597/ Hi Investor,<br/>I am a realtor here in Miami, and your question is based on too many factors to really give an answer.&nbsp; The area you&nbsp;purchase in has a lot to do with what your maintenance fees are, (closer to water and beach and higher amenity building means higher fee).&nbsp; <br/>You can generally expect a 2-4% return on investment in the coastal areas and up to 10% on inland property, but again a full analysis is not possible without the full picture.&nbsp; It is best to get a local realtor to help you with the details.<br/>I hope this helps!&nbsp; You can go to my profile if you wish.<br/><br/>Beth Jenkins Sun, 13 May 2012 02:13:00 GMT http://www.zillow.com/advice-thread/condo-rental-return-and-expenses/442597/ 2012-05-13T02:13:00Z