Help with a rental property
Hi guys, i keep wondering if i should applly the 5% vacancy, etc to any rental properties wihout checking out income? like i have this rental property and when i do my nunbers having CoC return of 8% i give 5% in all categories from the rental calculator and 10% for property manager gives me a $75 montly, deff low....What you guys think ?
#1 All Forums Contributor
- Investor
- Virginia
@Jorge Castillo
I never use standard numbers. For capex and repairs I will look at what needs replacement in 5 years and it’s cost and allocate towards that. I will run repairs by property condition and determine a cost
For vacancy I review the area and historical. But I always carry a min. Of 8% (one month)
Also depending on average tenant time I carry $ for turnover costs as well.
Quote from @Jorge Castillo:
5% may be low, but I don't know your market.
When I calculate, I use numbers based on my knowledge of the market in a town of 10,000 managing 400 rentals. You also have to adjust maintenance and capex. A brand new house may have 5% for maintenance and nothing for capex, whereas an old house needs 10% for both.
Hey Jorge! I just came across your post and saw that you are also in the Jackson, MS area. We offer an 8% management fee for owners with more than one home if you would be interested!
https://www.evernest.co/pricin...