Recommendations on expenses estimates
Hello BP!!
I am analyzing a three unit multifamily near the new west side/University Village area. I wanted to get opinion on what estimates do we need to make the following:
1) Vacancy - I was thinking of estimating 5.0% of monthly rent
2) Repairs - I am thinking of estimating 100 per unit - so 300 for three units
3) Capex - Was thinking 5.0% of monthly rent
Most of the buildings I am looking around are approximately 20 years old and tenant occupied. The building overall (atleast from the ourside) appears to be a pretty good condition - however I do not think the roof/heaters etc have even been replaced. How does one go about estimating these expenses?
4) Property Management - No clue - was thinking around 5.0% of monthly rent
5) Utilities - Tenant plays everything except water - I was thinking 100 per month ( I have no clue of water costs in Chicago)
6) Taxes and insurance - My realtor would be able to get me these estimates
I also wanted to check if there are any other expenses I need to factor in. Also, I have been reading about this 50.0% rule on many forums. How accurate is this? I make negative cash flow with this 50.0% rule.
Any opinion on this will be very helpful.
Thanks in advance.