More like 20% if you don't include labour. Then take out another 40-50% for insurance on the property. Then put the rest into paying the mortgage. Which you adm

More like 20% if you don't include labour. Then take out another 40-50% for insurance on the property. Then put the rest into paying the mortgage. Which you admittedly get back, but remember you're doing all the work on the house yourself and houses do wear out over time so that will eat into your margin even more. EDIT: Don't forget about property taxes! Those eat up a pretty big chunk of the rent too. They're usually a couple hundred a month. Let's be nice and call that 10% although it's generally much larger.