This rule of thumb states that the total cost of owning a rental property,
excluding the
mortgage and
interest payment, should be about 50 percent of the gross rent.
For example, if you bought a $ 200,000 home with a 10 % down
payment on a 30 year fixed - rate
mortgage at a 4 %
interest rate, your house
payment excluding taxes, insurance and private
mortgage insurance would be approximately $ 860 / month.