ilmscore | Prediction Details
"If you look around the metro Detroit area, you can [snorts] find some great houses just like this listed for sale for $250,000, which you will be able to rent out for right around $2,500 [clears throat] a month, which is pretty nice. Now, $2,500 a month in rental income sounds great, but you have to remember that's not all profit. When you purchase a house, you have expenses. You have to pay for the property taxes. You have to pay for the insurance. You have to pay for the maintenance. You have to pay for the management fees cuz I don't want you to actively manage the properties because remember I want this to be as passive as possible for you. In the beginning it's going to be a lot of work. But once you understand it and you build a good team, then it can be very passive for you because I don't manage my rental portfolio. I have a team of managers that are doing all the work and they just give me a report every single month of how things are doing. And then you have to cover the vacancies because there's going to be times where tenants move out of the house and you don't have anybody paying you. So let's factor in some costs. I'm going to round up what I think the cost could be because I'm not going to be upset if I made more money than what I expected. But if I make less money than what I expected, I'm gonna be a little bit more stressed out. So, when it comes to your property taxes, let's assume $250 a month in property taxes. Then you have to pay for your insurance. Again, another $225 a month for your property insurance. Then you have to pay for your maintenance. And hopefully your maintenance costs are going to be less, but let's just assume about $250 a month factored in for your maintenance cost. Some months are going to have no maintenance cost. Some months are going to have more. Then you have to pay for your management fees because I don't want you managing this property yourself. A property manager might cost 8 9 maybe 10% of the gross rent. So I'm going to go with the 10% number if you're making $2,500 a month in rent. Your property manager might take up to $250 a month in management fees. And then you have to pay for vacancy costs. If your property is vacant for one month out of the year, well, that's going to be an additional $28 a month in lost rent. Again, it's not an actual fee that you're paying, but I want to factor in the cost because most people forget that sometimes your property is vacant and you still have to pay for the expenses. Now, when you add up all these monthly expenses, what you'll see is that you are making about $15,800 a year in profit. And right now, I'm assuming that you don't have a mortgage, that you purchase this property all cash. Now, the first question you have to ask is, is this a good return or not? And this answer is going to depend on who you are and what your goals are. If you take this profit, $15,800, and you divide it by the amount of money you had to put in, a4 million, that's about a 6.3% cash flow."
By Minority Mindset | November 7, 2025 | Pending
From video
The Passive Income Lie Keeping You Broke - And Angry 00:20:25 - 00:22:55
Interpreted Prediction
In the metro Detroit area, a $250,000 house can be rented for approximately $2,500 per month. After factoring in property taxes ($250), insurance ($225), maintenance ($250), management fees (10% or $250), and vacancy costs ($28), the annual profit is estimated at $15,800, resulting in a 6.3% cash flow if purchased all cash.
AI Evaluation Notes
To evaluate the prediction, I need to find current data on rental income, property taxes, insurance, maintenance costs, management fees, and vacancy rates for the Detroit metro area to calculate the actual cash flow for a $250,000 house. I will use search to find this data.

Prediction Details

Topic
Real Estate Investment Return (Michigan)

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