How/What do cash flows look like with maintenance and vacancy?

How/What do cash flows look like with maintenance and vacancy?

Investor · American Fork, UT · Member since 2017 · 8 posts · 0 votes

I am very new to real estate but I have a goal to have my first deal done by August 31, 2017. I am looking a lots of different properties in different areas and trying to crunch the numbers. How is it that even though what I come up with is positive, it is usually very minuscule amounts. I am just wondering if this is correct?

With all expenses and financing it seems cash flow would be around $6,800 annually. However when I take some peoples recommend percentages out for vacancy and maintenance this drops to about $1,110 annual cash flow. Just wondering if this sounds right? Also wondering what most of you set aside for vacancy, maintenance, and eviction? 

Any input would be much appreciated.. Thank you! 

Tanner 

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  • Philadelphia, PA · Member since 2016 · 73 posts · 28 votes
    9y

    Finding properties with good cash flow can be very challenging in real estate markets that are strong. When you are looking for new investments it isn't uncommon to have to look at a lot of properties (like 100) before you find one with potential.

  • Investor · American Fork, UT · Member since 2017 · 8 posts · 0 votes
    9y

    Thanks for the reply Adam.. I will definitely keep looking aggressively. If you do not mind, what percentages do you set aside for maintenance, eviction, and vacancy? I know it is a bit ambiguous and relative to the type or rental, but just ballparks would be nice. As I might be taking too much out possibly. 

    Thanks again! 

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