There are a number of expenses that would have to be account for. There are some expenses such as realty’s employees, and hardware that needs to be account for. There is also per building expenses. This will vary based on the size of the building, but I am going consider worst case scenario for the rationale of the expenses. One expense that does not matter how many buildings I will have will include the pay of receptionist, my maintenance employees, and my pay. Also, all of the telephone numbers that would be for the buildings (even if not operational) will be acquired so I have the telephone numbers when the building becomes ready to lease out. With that said, expenses will be $50,000 + $15,000 per building. This will be a maximum of $200,000 for all of the buildings.
This sounds like a lot, but assuming 100% occupancy, this will generate about $1,000,000 for income. Under normal circumstances, 100% occupancy isn’t realistic, but I will be targeting low income households, and from there – I will be limited to fair market rent. If the owner did fair market rent, and supported Section-8 tenants, I will imagine that they too will have 95%-100% occupancy. With that said, I am willing to take a loss on profits to provide affordable housing for low income tenants.