I'm currently looking to buy my first starter property which I plan to live in for a few years. Then I'll likely buy another property and rent this one out. Right now the going rental rates wouldn't make it viable given the mortgage rate I'll be paying. My question is what type of return should I expect to make on my rental rates? If I my mortgage payment was $1100 and I rented it out for $1300 would that be too little a return? Should I expect to make a cash return every month or are rental properties more of a means to build equity by covering the mortgage payment. Should I be happy if I'm only just covering the mortgage payment?
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