Novice landlords often absorb the myth that any income earned from your rental properties is profit. If you’re realistic, though, there’s a lot more to the picture. Budgeting is a big part of it.
The income you earn from each unit may partly qualify as profit, but a good percentage also goes back into the property; at least, it certainly should. For starters, you have predictable expenses such as taxes, mortgage payments, insurance, and utilities.