I thought I'd provide some friendly feedback about the calculators on here. I love using them, but one thing that bugs me is that I am required to put % of rent into the expenses field (maintenance, vacancy, etc).
I calculate fixed expenses. The only % I use is for the % my PM charges me per month.
Any plans to add this feature?
I've started building my own spreadsheets, but don't trust them and would rather use the calculators on here.
@William S. , I suggest: change your mindset. Why? 1. When you look at whether a deal is a "deal", you WANT to know what your return is per month - as a PERCENTAGE of your purchase price, right?
eg. The "1% Rule". The point is, even if you don't work it out that way, you CAN, right? (and "should", I dare say).
It follows therefore, that all expenses can (and should) be knowable as a percentage reduction, from 100% Income.
Yes, it'll be different percentages depending on the overall age and value of the property, but so what?
If you don't do it that way, how will you work out your PERCENTAGE return on your Investment, without re-converting?
What, you don't want to know that either? In that case, I give up...
There is no possible way to calculate "fixed expenses" going forward 1, 5, 10 years into the future. If you are using dollar amounts you are using yesterdays numbers which can not ever be considered accurate.
Actual numbers do not exist. Actual expenses, ROI etc. numbers do not exist till the day you sell a property.
% based calculations are estimates based on historic statistics which you must adjust to suite your investment environment.
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