DFW Holding Cost: How do you determine them?

Question

Good evening BP members,

For those of you who fix and flip in the DFW area, how do you calculate or determine how much your holding costs will be?

What would be a good way to understand the average electricity bill, water bill etc?

Thanks in advance!

Andrew Postell · Answer

@Daniel Mendez I do factor utilities in as a holding cost but I also factor EVERYTHING else too.  Hard Money payments, insurance, etc.   I even factor in a couple of car/gas charges because I'll be driving to the property a few times too.  Anything that costs me money while the property is NOT making me money is a holding cost to me.

Daniel Mendez · Answer

Thank you, Mike.

I greatly appreciate your input.

Daniel Mendez · Answer

Thank you, Anthoney.

Mike Burkett · Answer

@Daniel Mendez  For smaller houses, neither will be a big number.  $50-$75 for water/sewer unless you are watering grass in summer.  $50-$100 for electric unless you are running AC/heater all the time.  Neither should have a big impact on economics.

Anthoney Hanks · Answer

For me it is a guess. But with no water running probably around $45-$60 and if garbage is part of that $80-$100. You could call a electric company and they probably could give you an average. But my rehab (960 sq ft) avg $120. Hope this helps. And mine is rural area too.