Break-Even Point

The break-even point refers to the point where the income you receive from a rental income matches the amount of money it takes to maintain the property. Your goal as a rental property owner is to make a profit each month. However, you will not be able to run your property without incurring some fixed costs each month. You will need to pay your mortgage, pay for any needed repairs and prepare for any properties that may be empty for any given month. For example, say you had a mortgage of $1,000 a month as well as $250 a month in other expenses. Your total monthly property expense is $1,250. This means that you would need to make $1,250 a month in order to reach your break-even point.