Originally Posted by
zkzkz
Is it not bonkers to have 3/4 of your rent going to operations costs? Like if you rent out a regular apartment you certainly don't expect to spend 3/4 of the rental income to manage the apartment. Even if you hire a management company and have an old building and other costs you would be very surprised to have even 20% of your rental income gone before taxes and borrowing costs.
I bet the broker touting those numbers are either ginning up some unrealistic mortgage terms or including property management, including "marketing" the property by himself or his firm.
You have to wonder about his assumptions for occupancy rate, how many nights he could rent the place, what kind of rates he could get.