Looking for tips on analyzing deals

[Jennifer Stammberger]

Just started analyzing deals on the BP calculator. When it comes to % on expenses such as vacancy rates, Capital exp, repairs/maintenance etc....should I always run high % for worst case in order to be safe? The range obviously has a huge impact once I run it and then I feel myself getting analysis paralysis. I'd love any feedback/tips on this, thanks! 

[Nathan Gesner]

Quote from @Jennifer Stammberger:

Just started analyzing deals on the BP calculator. When it comes to % on expenses such as vacancy rates, Capital exp, repairs/maintenance etc....should I always run high % for worst case in order to be safe? The range obviously has a huge impact once I run it and then I feel myself getting analysis paralysis. I'd love any feedback/tips on this, thanks! 

This depends on how risk-averse you are. Starting out, I would use 10% as a default until I had more knowledge/experience to dial it in to a more accurate number.

I'm experienced, particularly in my market. So I know I can keep vacancy below 5%. The amount for maintenance can depend on age/condition of the home because a newer house (typically) won't require as much maintenance as a 75-year-old home. Think it through and adjust based on your reality.