What percentage of expenses should I factor in?

2 Replies

What are some of the guidelines I should follow when trying to figure out if a deal is good or not?

Say for example i'm getting $2000/month gross from a 4 unit in my area (it's cheap around here)

That house would probably cost around $120,000, which makes about an $860 per month payment for mortgage with 0% down

What are some of the percentages I should be subtracting to get a rough estimate of the house?

All I know is 7-10% for a property management company and about 15% vacancy rate. For taxes, insurance, repairs, etc....NO IDEA

Can anybody give me a general guideline to follow?

15% vacancy is rather on the high side. I normally go with 10% for vacancy along with 10% for maintenance. Taxes can be precisely calculated from your tax accessor's website (most of the time its online), and for insurance I'd call your agent and ask for a quote.

I got that from going on foreclosures.com and looking up the community information

For most of the towns around here it was around 13-14% vacancy so I just madei t 15 to go on the safe side when doing the numbers...I dunno tho i'd have to check with some realtors around here though to get better numbers

Anyway, I'll try to find the tax office around here...thanks!

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