Some properties need higher repairs and renovations - especially where you have tenants who have destroyed the property, before skipping. I have had situations where the tenant urinated and defecated on the carpet, destroyed the kitchen and bathroom before disappearing. And I have had to spend $30k to fix it.
Other times, its due to mother nature. I have had my property flooded. And even with insurance payment, it wasn't enough to buy the replacement value.
Then you have land tax, council rates, insurance and annual repairs.
And finally, the interest charges on the loan.
There is no fixed interest rate number that fit for all situations. Every situation is different and every year is different.
To be a proper landlord, you have to earn income from other sources - on top of rental income, and you have to put money aside for these additional expenses (on top of interest charges).
Its only when you are in the game (property investment), that you realizes these facts versus fictions being projected about.
