Setting up my cash analysis numbers for Indy--thoughs
I'm setting up my expense spreadsheet "run the numbers" on the properties I'm considering. I've notice that different regions use different number (and I should imagine different types of properties should as well). So I was hoping for thoughts and input.
My expenses are as follows
| Property Tax |
| Insurance |
| Utilities ( -occupant paid) |
| Maintenance 10% |
| Misc. Expenses |
| Management 10% |
| landscaping |
| listing/legal expenses 2% |
| Capex 5% |
| Vacancy 10% |
| Trash/sewer |
What think you of my %?
I often see vacancy set at 4% in major markets, but have likewise seen advice that 10% is more appropriate for indy. Should I use an occupancy map (know a good one?) and adjust % based on the area? I'm not a low-end neighborhood kind of investor (Irvington, Beech Grove, edges of FS and on up to Kessler-meridian, BR, etc.). SO I don't need war-zone rates ;-)
Also, is there any site I can use to get proforma info on insurance and the likes? Why get into asking about a property if even the proforma numbers aren't working.
Should a new rehab rehab be 5% maintenance and capex, and the further you move out from "recent" the higher the % goes? do you have any guide/rule of thumb you use?
Thanks for your thoughts!
Ronn