Some of those financial assumptions are overly rosy. I did my finance homework and leanred a 5% vacancy rate implies one month every two years—nice if you can get it, but not necessarily realistic. And 10% seems to be the typical management fee, so the management + maintenance figure would need to be higher than that.
Also worth considering: if you can make a sound investment in a house for little money down in a neighborhood with good prospects, why don’t your tenants do the same? Perhaps one has overestimated the prospects of the neighborhood or the creditworthiness of one’s tenants.
Some of those financial assumptions are overly rosy. I did my finance homework and leanred a 5% vacancy rate implies one month every two years—nice if you can get it, but not necessarily realistic. And 10% seems to be the typical management fee, so the management + maintenance figure would need to be higher than that.
Also worth considering: if you can make a sound investment in a house for little money down in a neighborhood with good prospects, why don’t your tenants do the same? Perhaps one has overestimated the prospects of the neighborhood or the creditworthiness of one’s tenants.