Investment property interesting - And what about the topic of taxes?

Lately, I've been thinking more seriously about whether I should buy a 1 or max 2 room apartment to rent it out. A few properties were at least initially interesting from a financial perspective. However, I was probably a bit off regarding the taxes. It apparently has to be calculated according to the income tax rate, and it hardly gets any worse than that.

Can someone here tell me roughly what percentage or how many months' rent (cold) have to be paid after depreciation, etc.?

It would be good if someone who rents out could give a reasonable estimate here.

What I'm also interested in is: From your point of view, has an almost 4% return already proven to be worthwhile? If you have more, how low would you go to say it's worth it?

Tax advisors like to calculate it. Otherwise, 4% before or after taxes?

I wouldn’t bother with the stress at 4%.

Off to the tax advisor.

Rule of thumb?
15 to max. 20 times the annual net rent = purchase price including incidental purchase costs to generate a reasonable return. As little equity as possible (100% financing) for high leverage and sell tax-free after 10 years.

Now that's what I call a good rule of thumb, although I would add that 20 years of net rents is already borderline and the property should at least remain value-stable. In the rural countryside in a village of 300 inhabitants, it usually never pays off, no matter how high the yield appears.

Renting out. We also rent out. I calculate like this. Original acquisition cost 150 thousand. Annual net cold rent 7,500 before taxes. The market wouldn’t allow more anyway. That gives 5%. Depending on tax rate and depreciation that can be applied, it results in a 2 to 3 percent return, which is not much, but additionally, tax-free, the apartment would be worth 150 plus x in case of sale. Keep in mind, you do not tax the rent, but the profit from the apartment. So from rent, depreciation, maintenance costs, possibly landlord legal protection premium, etc., etc., are always deducted. Karsten

But if it is a full financing, nothing remains, or the income side is lower than the expenditure side. Of course, if you see it as a kind of "profit saving" with small amounts in order to sell the apartment for amount X in 15 or 20 years, it might fit again. The problem I only see is that at the moment there are hardly any apartments in the larger cities where the annual cold rent x 15 still equals the acquisition value. In addition, you should look at any modernization measures that are pending (both in the apartment and in the communal property itself). Even if these costs can be passed on, they still have to be interim financed at least.