I think the title sums it up, our family is in a situation where a property is being cared for by a guardian. The residence has a potential rental client with a solid background and good reputation. The problem we have is that we're not sure if it will be more prudent to sell or to rent. We know what the mortgage payment is, the annual property tax and insurance rates. What we're not sure of is what is a practical amount to factor in for regular maintenance. The rental has a newer furnace, updated electrical service, water heater etc. I had guess about 20% over and above the base costs plus another 10-20% as income. Once finished that calculation, we would then determine if we can hold the property and earn income or if it's more expeditious to sell based on what the local rental market is allowing landlords to charge. So basically my question is are my maintenance & margins about right or do I need to adjust them before I start comparing to the rental market?
TLDR version, what factors do I need to consider when determining the minimum rental rate on a property in order to earn an income?
TLDR version, what factors do I need to consider when determining the minimum rental rate on a property in order to earn an income?