New investor just looking for a few questions to be answered.
Hey guys,
I am a new investor from Vermont still trying to find my first deal. I am interested in buy and hold investing and found a property that might be a good deal if I can get the seller to drop down the price some. The property I am looking at is a triplex and I would live in one unit for the lower down payment. I just have a few questions to help me with running the numbers on a property.
1. After I figure out all expenses how much should I set aside for cap ex? I see a lot of people saying 15% of monthly gross rental income.
2. How much should I set aside for vacancy? I also see people saying 15% but this seems like a lot of money, do most people need this much set aside for all rental homes?
3. How much for basic repairs such as repainting and carpet replacements? Another 15%?
4. What is a good cash flow on property like this to start, after putting everything aside if the property cash flowed 200 a month do you think it is worth it?
Thanks for any help!