How does the ""13000 USD Net Income"" calculation work for small investors

For a small investor buying a 250000 dollar unit the calculation shows a net income of around 13000 USD per year. This is derived by taking the gross rent approximately 17000 USD and subtracting service charges and vacancy losses. While 13000 USD mi…

The full explanation

For a small investor buying a 250000 dollar unit the calculation shows a net income of around 13000 USD per year. This is derived by taking the gross rent approximately 17000 USD and subtracting service charges and vacancy losses. While 13000 USD might seem modest it represents a very healthy return on the actual cash invested especially if the property was bought with a payment plan and is appreciating in value simultaneously.

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