An old family friend of mine told me this before we began. If 70% of the rent cant cover all fixed expenses(mortgage, insurance, taxes, utilities*, condo fees), its not a worth while investment. That leaves 30% for maintenance and vacancy.
It forced us to look harder at every investment we have made, and we bumped it 80% for things like townhouses where much of the exterior maintenance is covered by condo fees.
This rule of thumb has worked for us and our level of risk.
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