Practice with the BP Rental Property Calculator
Hi all,
I recently upgraded my account to Pro and have been playing around with the BP Rental calculator with a particular property and was hoping to get some critiques or pointers on how I can improve my analysis...
Case in point, I chose this property to analyze:
https://www.redfin.com/CA/Roseville/344-Main-St-95...
http://www.realtor.com/realestateandhomes-detail/3...
Link to my BP rental property report:
https://bp-v-newproduction.s3.amazonaws.com/upload...
How I came up with the values:
- For annual property taxes ($2726) I took from the realtor.com link for 2016
- For closing cost, I chose the highest suggested ($2500)
- Estimated repair cost ($5000) the property looks decent, but chose $5000 figuring there will be a need to repair something.
- Selected 25% at 4% interest rate, Left points charged and cap rate as blank. (Is that ok? is that standard?)
- Took the rent rates directly form redfin.com link and monthly insurance $75 (rounded up from $62)
- For expenses water/sewer ($100), garbage ($50) these are arbitrary numbers I selected without much research (not the best method for accuracy i know :/ ). From redfin link, it stated that tenant will pay cable, electricity, gas/propane so i left those values blank.
- Vacancy (5%), Repairs/Maintenance (5%), Cap Ex(10%) , Prop mangment (10%)
- Annual growth (1%), Annual PV growth (1%), Annual Expense growth (1%), Sales Expenses (9%)
Do you have any advice on how I can gather more accurate numbers? How would you grade my Rental Report? All comments and suggestions are greatly appreciated. Brandon from Bigger Pockets makes it look so easy lol ;)
Thanks,
Peter