I am new to the Real Estate world and still very much in the learning phase of my journey, but I had a question regarding expenses. One thing I noticed that was not generally being accounted for when calculating expenses on a rental property were any CPA and Attorney fees you will need to pay. Do people generally account for those as monthly expenses to help determine cash flow? Say I analyzed a property and determined the monthly cash flow would be $200. However, lets say the monthly average of any CPA/Attorney fees I incur is $250, so in reality by owning that property I would be cash flowing -$50/month. I have no idea how much those fees typically are, so it's very possible that example isn't super realistic. However, since I would not normally incur those fees unless I owned a rental property, I would think they would need to be factored in. Perhaps there is something I am missing or not thinking of, but I had not seen any information about it yet. Thanks in advance for any input!
Hi -@Zak Leonard - You bring up a good point that many beginners don't think about. The cost of your CPA is usually an annual cost when you're getting started. You can reach out to some CPAs to get an estimate, but if you're starting out without other complicated items, you're probably looking at $800 - $1K per year (or $75ish/month) for your proforma. You most likely will be working with attorneys on an as-needed basis. When analyzing deals, you can add the estimated attorney fees to your closing costs.