Back Again with More Questions

[Nathan Hedrick]

Hi,

I have been reading into real estate investing and I am trying to learn how to calculate all the different aspects of a property when checking it out, such as Income, Expenses, Cash Flow, and CoC. Now the issue I am running into the most is calculating expenses. Mainly the following:

Insurance

Water

Garbage

Electric

Gas

HOA Fees

Lawn/Snow

I am not sure where to start researching these specific expenses. I am just looking to do these so I can have a look at a property and decide if I think it is worth calling and seeing the property in person or not.

Thanks in Advance,

[Nathan Grabau]

If you are within 20% on all of these, it shouldn't make or break the deal. This is how I would handle each of these:

Insurance: I would use Zillow's number for stage one and then you can confirm with an insurance agent once you are under contract in due diligence. 

Water: You can ask what the owners water bills have been like. If it is a single family home, your tenant should pay this.

Garbage: If you are going private, you should be able to call a company and ask what they recommend for a four plex and ask what that costs. If it is a single family home, your tenant should pay this. 

Electric and gas: I would not buy a property that's electric was not separately metered, so this should be 0 outside of vacancy loss or common areas where it will be low. 

HOA Fees: This should be listed in the listing. If looking off market, l

Lawn/ Snow: I would call a local landscaping company and ask what they charge. I personally try to minimize grass areas(this helps with water too).