JMZ Blog › Investor Guides
The cash you need to buy and operate a rental home is the down payment plus closing costs, inspections, any repairs before the first tenant, leasing costs, a few months of carrying costs while the home is empty, and a cash reserve for surprises. The down payment is usually the biggest piece, but investors who only save for the down payment are the ones who end up scrambling when the furnace quits in month three.
Property management in Metro Detroit costs a monthly management fee (usually a percentage of rent), a leasing fee each time a new tenant is placed, and a few smaller one-time or optional fees; at JMZ Management that means 10% of monthly rent with a $100 monthly minimum, plus a leasing fee equal to the first month's rent. Below is the full 2026 fee breakdown, with worked examples so you can estimate your own cost.
JMZ Blog › Investor Guides
The rent will cover all of your costs only if it is larger than your mortgage payment, property taxes, insurance, management, routine repairs, savings for big-ticket replacements and an allowance for vacancy, added together. Most new investors count the first three and forget the rest, which is how a rental that looks profitable on paper ends up costing money every month.
