Real estate returns
A bit of background: I work in corporate finance, but have started getting into RE investing in my free time, so my knowledge of the space is pretty limited.
I recently finished renovating a duplex, and have secured rents in each unit with an average of $900. My fully loaded mortgage is under $800. My question is, what am I missing? Even after OPEX, I'm still planning on walking away with about $700 / month pretax, and this seems pretty high. Is all small time real estate this profitable? How do the margins do when you start scaling for more units?
Every REIT I've looked at has trash returns (no offense to anyone who does that for a living), so I'm just trying to understand the disconnect.
Thanks in advance...