Using Proforma Calculators
Hi All!
I'm new to buy and hold investing. I'm using a excel spreadsheet that has a conservative 10% vacancy reserve and 10% maintenance reserve every month. I've spoken with turnkey companies that say they use a much lower number: 5% vacancy reserve and 5% maintenance reserve.
I get that I am being conservative and using 10% as a worse case scenario but I don't want to turn away good deals if they are matching my criteria otherwise. A fully rehabbed turnkey property will probably not need the maintenance reserve of 10%.
How do you all crunch the numbers so it makes sense to you? Thanks in advance!