How do I estimate expenses in an unfamiliar market?

How do I estimate expenses in an unfamiliar market?

Woodland Hills, CA · Member since 2015 · 23 posts · 7 votes

I was just practicing with the BP calculator on a real property that is for sale -- 12 units.

This market is about 50 miles away from me so any suggestions on how I can make fair estimations of all the expenses to plug into the calculator?

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Levi T.Pro Member
Rental Property Investor · Tucson AZ / Nice FR / Washington DC · Member since 2016 · 1k+ posts · 1k+ votes
10y
Call the companies in question and tell them your buying the property and need to get an average or estimate of high/low in monthly cost. They can and will tell you. Most everything from power, gas, taxes, and insurance can be quoted with just a few phone calls.
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  • Investor · Anaheim, CA · Member since 2014 · 242 posts · 81 votes
    10y

    Talk to a broker in the market about what you plan on buying. 50 miles away is not that far and your materials will not fluctuate much if at all. Now, 1800 miles, 6 states away is different. 

    Good luck 

  • Woodland Hills, CA · Member since 2015 · 23 posts · 7 votes
    10y

    @Omar Ruiz thanks Omar that's a good tip. I'm just trying to practice with the calculator at this point but I want to use real numbers as much as possible. 

    If There's a website that has city averages for electricity water gas et that would be ideal. 

  • Investor · Anaheim, CA · Member since 2014 · 242 posts · 81 votes
    10y

    Such a website doesn't exist and would be extremely difficult to create due to every ones unique different needs. If you do find one, please share with everyone. 

    You'll need to get comfortable making perfect decisions with imperfect information in order to be successful.

  • Levi T.Pro Member
    Rental Property Investor · Tucson AZ / Nice FR / Washington DC · Member since 2016 · 1k+ posts · 1k+ votes
    10y
    Call the companies in question and tell them your buying the property and need to get an average or estimate of high/low in monthly cost. They can and will tell you. Most everything from power, gas, taxes, and insurance can be quoted with just a few phone calls.
  • Woodland Hills, CA · Member since 2015 · 23 posts · 7 votes
    10y

    @Levi T. . Excellent idea. Thanks so much!! 

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