>>936976You aren't even factoring in maintenance costs.
Commercial real estate is a different world of it's own, but the general rule of thumb for residential is that everything sans mortgages costs 50% of whatever the rent is. That means maintenance, both scheduled and emergency, costs during vacancies, cleaning expenses, advertising, taxes, and anything else you can think of. Some years it will be 20%. But you should plan on it being 50% until you have a large buffer of liquidity to handle emergencies like a blown furnace, and planned updates like a new roof, or painting.
The other 50% goes towards mortgage payments. If you have money left over, that's your cash flow.
Don't go into real estate blind. You don't live off of 1 or 2 properties. You live off of dozens, and the income from all of them pays for vacancies and other expenses for the ones that are having a bad spell.
Alternatively. Feel free to run into it like a madman, go bankrupt, and be forced to sell off property at 50% of its market rating. Those of us in RE love people like that. Great deals make great money.
