October 27, 2026

Best vs. Worst Rental: Why One House Makes $8,000 a Year and a Similar One Lost $2,400

Key Takeaways

Two similar single-family rentals in the same city collect about $17,000 and $18,000 a year in rent. One clears more than $8,000 a year; the other lost about $2,400 last year.
Rent wasn't the difference. The mortgage was: about $4,500 a year on one house versus about $13,000 on the other.
A tenant turnover (vacancy plus make-ready costs) turned a break-even year into a loss.
In Oklahoma, a rental's taxable value resets to the sales price when it sells, so a newer purchase usually carries a higher tax bill than a long-held one.
Know the numbers on every property you own, not just whether your bank balance went up this year.

Our CEO, Brian Mullins, owns 20 rental properties of his own: 18 single-family homes and two commercial buildings. They don't all perform the same. In a recent video he walked through his best and worst performers side by side, and the gap is bigger than most owners would guess for two houses that look almost identical on paper.

Early in his career, Brian asked an experienced landlord how his portfolio was doing. The answer: "I don't know. My bank account is higher at the end of the year than at the beginning." That isn't the same as knowing which properties are earning their keep. Here is what knowing looks like.

The Two Properties

Both are single-family rentals in the same city in the Oklahoma City metro. Property B is a little newer, but not by much.

Property A (best): about $17,000 a year in rent. Owned about 10 years. Same tenant for several years.
Property B (worst): a little over $18,000 a year in rent. Owned a few years. Turned over to a new tenant this year.

Property B actually brings in more than $1,000 a year more rent. So rent isn't what separates them.

Operating Costs: Close

After maintenance and property management fees, the two houses kept a similar share of their rent. Maintenance moves around from year to year, since some years a house simply has more work orders, but neither property is a repair problem.

The one operating difference this year was the turnover. When Property B's tenant moved out, it sat vacant while it was prepared for the next resident, and a turn always brings make-ready costs (and often a few upgrades). Property A has had the same tenant for years, with no vacancy and no turn costs. Brian's estimate: if Property B's tenant had renewed, it would have finished the year right around break-even instead of in the red.

Taxes and Insurance: Close, With One Oklahoma Twist

Insurance on the two houses is within about $100 a year of each other. Property taxes differ more, for a reason specific to Oklahoma.

The state constitution limits how fast a property's taxable value can rise: no more than 5% a year for a rental, and 3% for a homestead. But that limit resets when the property sells, and the taxable value jumps to the sales price. Brian has owned Property A for about a decade, so its taxable value has crept up slowly. Property B's reset when he bought it. (State Question 847, on the November 3, 2026 ballot, would lower the caps to 4% for rentals and 1.75% for homesteads starting in 2027.)

If you're buying, estimate taxes from your purchase price, not the seller's current bill.

The Mortgage: Where the Real Gap Is

Property A: about $4,500 a year. Bought about 10 years ago for a lower price, at a low rate, on a 30-year loan.
Property B: about $13,000 a year. Bought recently at a good price, but when rates were high, on a 20-year loan.

Why a 20-year loan on the expensive one? When Property B was bought, a longer amortization would have meant a higher rate, so Brian accepted roughly break-even cash flow in exchange for a lower rate and faster principal paydown. There's an old line in real estate: marry the house, date the mortgage. Property B has been a good asset. It just isn't cash flowing while that loan is in place.

The plan is to refinance when rates come down, possibly together with a couple of other properties bought in the same high-rate stretch. Moving to a 30-year amortization would raise cash flow considerably, at the cost of paying down less principal each month. There's a trade-off either way, and that's a decision you can only make if you know the numbers.

What This Means for Your Rentals

Run the full spreadsheet before you buy. Don't stop at the rent. Include taxes at your purchase price, insurance, maintenance, management, a vacancy allowance, and your actual loan terms. Our 2% rule guide walks through the full cash-flow math.
Treat renewals as income. One turnover was the difference between break-even and a $2,400 loss. Keeping good residents in place is one of the cheapest ways to protect cash flow (here's how we approach it).
Look at the portfolio, not just the house. One property losing money in a year is survivable when the rest of the portfolio is producing. With a single rental, the same vacancy is the whole year.
Revisit your financing. A property bought at a high rate can become your best performer after a refinance. Know which of yours are candidates.

Want to see how your rental stacks up? We'll give you a realistic rent estimate from current local comps and walk through the numbers with you. Get a free rental analysis.

Frequently Asked Questions

Is it bad if one of my rentals loses money in a year?

Not necessarily. A turnover year, a major repair, or a high-rate mortgage can push a good property negative for a year. What matters is why it lost money and whether the cause is temporary (vacancy, a one-time repair) or structural (rent that can't cover the debt). Track each property separately so you can tell the difference.

Does Oklahoma limit how much property taxes can go up?

Yes. Oklahoma limits annual increases in a property's taxable value to 5% for non-homestead property such as rentals and 3% for homesteads. The value resets to the sales price when the property sells, so a new owner's tax bill can be noticeably higher than the previous owner's. State Question 847, on the November 3, 2026 ballot, would lower those caps beginning in 2027.

Should I use a 20-year or 30-year mortgage on a rental?

A 30-year loan lowers the payment and improves monthly cash flow; a 20-year loan builds equity faster and sometimes carries a lower rate. Many investors choose based on the rate offered at the time and their cash-flow goals, then revisit the decision with a refinance when rates change.