Tenant Pool Considerations

A Good Tenant

The only way to have a dependable passive income is if your property is continuously occupied by a "good" tenant. A good tenant is someone who:

• Has stable employment in a market segment that is very likely to be stable or improve over time
• Pays all the rent on schedule
• Takes care of the property
• Does not cause problems with neighbors
• Does not engage in illegal activities while on the property
• Stays for many years

Las Vegas Tenant Pool Segment Characteristics

Dependable Passive Income Steps

Apparent vs. Probable Return

Apparent return

Below is a simplified return formula.

• ROI = (Income - DebtService - ManagementFee - Insurance - RETax) / ( Acquisition Cost)

Probable Return

• Transient: ROI = (Income - DebtService - ManagementFee - Insurance - RETax - $3,200) / ( Acquisition Cost)
• Permanent: ROI = (Income - DebtService - ManagementFee - Insurance - RETax - $400) / ( Acquisition Cost)
• Transitional: ROI = (Income - DebtService - ManagementFee - Insurance - RETax - $3,500) / ( Acquisition Cost)