The Surprising Way Real Estate Bleeds Cash Monthly
Insurance and Taxes
Property taxes and insurance premiums can also take a substantial bite out of your real estate earnings. Property taxes vary widely depending on location, but they can be significant. For instance, in New Jersey, the average property tax rate is 2.49%, the highest in the country4. Additionally, landlord insurance is often more expensive than standard homeowner policies due to the increased risks associated with renting out a property.