Hey there! I want to share with you the amazing returns I’ve been getting from my 10-unit apartment building. In this article, we’ll break down the numbers and show you exactly how much money this property makes me every year.

So here’s the deal – each of these 10 units brings in around $1,625 in rent every month. Multiply that by 10, and we’re talking about a monthly income of $16,500! But wait, there are expenses too. The mortgage, property tax, insurance, and property manager costs add up to about $9,000 per month. So after subtracting these expenses from the rental income, I’m left with a positive cash flow of $7,500 per month, which amounts to $90,000 a year. And mind you, I still have $1.5 million in equity tied up in this property.

That’s all for now! Just wanted to give you a glimpse into this incredible investment opportunity. Stay tuned for more insights and real estate investing tips.

Rent Income

Rent Income is an essential aspect of managing a rental property. As a landlord, it is important to have a clear understanding of the rent you can expect to collect from each unit in your property. This knowledge is crucial for budgeting purposes and determining whether your investment is generating enough income to cover your expenses and yield a profit.

Rent per Unit

Calculating the rent per unit is relatively straightforward. You need to assess the rental market in the area where your property is located and determine the appropriate rental rate for each unit. Factors that can influence the rent include the size, condition, and location of the property, as well as the amenities and services it offers.

To determine the reasonable rent per unit, it is helpful to conduct thorough market research and compare similar properties in the area. You can look at rental listings, speak with local real estate agents, or even consult property management companies that have expertise in your market. By gathering this information, you can set a competitive and fair rent that will attract potential tenants while also ensuring that it covers your expenses and generates a profit.

Total Rent Income

Once you have determined the rent for each unit, you can calculate the total rent income by multiplying the rent per unit by the total number of units in your property. This figure represents the total amount of money you can expect to collect from your tenants on a monthly basis.

It is important to note that the total rent income may fluctuate over time due to various factors such as changes in the rental market, tenant turnover, or property upgrades. Therefore, it is always a good idea to review and adjust your rental rates periodically to remain competitive and maximize your rental income.

How Much This 10-Unit Apartment Makes Me Every Year

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Managing a rental property involves various expenses that need to be considered to accurately assess the profitability of your investment. These expenses can include mortgage payments, property taxes, insurance premiums, property management fees, and maintenance costs.


If you have financed your rental property through a mortgage, a significant portion of your monthly income will go towards mortgage payments. These payments consist of both principal and interest, and it is important to budget accordingly to ensure these payments are covered by the rent you collect. Keep in mind that mortgage rates and terms can vary, so it is essential to review your mortgage agreement and understand the exact amount you need to allocate towards this expense.

Property Tax

Property taxes are another essential expense that needs to be factored into your budget. The amount you pay in property taxes is typically based on the assessed value of your property, and the rates can vary depending on the municipality where your property is located. It is important to stay informed about any changes or updates in property tax rates to ensure accurate financial planning.


Insurance is a crucial component of protecting your rental property and minimizing financial risks. Landlord insurance typically covers property damage, liability protection, and loss of rental income due to unforeseen circumstances such as fire, water damage, or tenant default. The insurance premiums you pay can vary based on factors such as the location and condition of your property, the coverage limits you select, and the insurance provider you choose. It is prudent to shop around and compare insurance quotes to ensure you have adequate coverage at a reasonable cost.

Property Manager

Hiring a property manager is an option for landlords who prefer to have professionals handle the day-to-day operations of their rental property. Property managers can assist with tenant screening, rent collection, maintenance and repairs, and other administrative tasks. The cost of hiring a property manager usually ranges from 4% to 12% of the monthly rent, depending on the services provided and the market conditions. While this expense can reduce the burden of managing your property, it is important to weigh the cost against the potential benefits and decide if it aligns with your specific needs and circumstances.

Total Expenses

To calculate the total expenses, you need to add up all the individual expenses associated with your rental property. This figure represents the sum of your mortgage payments, property taxes, insurance premiums, property management fees, and any other recurring expenses you may have. By determining the total expenses, you can have a clear picture of the financial obligations and compare them to your total rent income to assess the profitability of your rental property.

How Much This 10-Unit Apartment Makes Me Every Year

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Cash Flow

Cash flow is a key indicator of the financial success of your rental property investment. It refers to the net income generated by your rental property after deducting all the expenses associated with its operation.

Positive Cash Flow

Positive cash flow occurs when the total rent income exceeds the total expenses of your rental property. This means that your investment is generating a surplus of funds each month, which can be reinvested, used to pay down debt, or increase your savings. Positive cash flow is a desirable outcome for landlords as it indicates a profitable investment and provides financial stability.

Yearly Positive Cash Flow

While positive cash flow on a monthly basis is essential, it is also important to assess the yearly positive cash flow. This involves looking at the cash flow over a longer period, typically a year, to account for any seasonal variations or one-time expenses. By analyzing the yearly positive cash flow, you can gain a more comprehensive understanding of the profitability of your investment and identify any areas where adjustments may be needed.

How Much This 10-Unit Apartment Makes Me Every Year

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Property Value

The property value of your rental property is an important factor to consider for both financial planning and future investment decisions. Property values can appreciate or depreciate over time, depending on various market factors and the condition of the property.

To gauge the current property value, you can consult with real estate agents, appraisers, or access online tools that provide estimated property valuations. These professionals can assess the market value of your property based on recent comparable sales, the condition of the property, and other relevant factors.

Being aware of the property value is crucial for tracking the performance of your investment, determining the potential return on investment, and making informed decisions regarding refinancing, selling, or acquiring additional properties. Regular property value assessments can help you stay on top of your investment strategy and maximize your returns in the long run.

In conclusion, understanding the dynamics of rent income, expenses, cash flow, and property value is essential for effectively managing a rental property. By carefully evaluating and monitoring these factors, you can ensure the financial success of your investment and make informed decisions to maximize your return on investment. Remember, being diligent in your financial planning and property management practices will set you on the path to becoming a successful and profitable landlord.

How Much This 10-Unit Apartment Makes Me Every Year

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