Hello everyone, I am a newbie investor from the Bay Area (not in tech though!), interested in SFH in the B+/A neighborhoods of the Indy suburbs (Carmel, Fishers, etc). I am not really looking for cash flow as much as a long-term buy and hold investment in a really solid location.

Since I am new at this, I was playing around with the numbers and wondering about my assumptions.

One valuable tip I’ve already realized is the higher-than-expected property tax on investment properties in the Indianapolis area, referenced by @Victor Tatyanin in a recent post (I was quite disappointed by this, but of course this is vitally important information!)

My question: Is 10% of rent for maintenance, and 5% of rent for Cap Ex a decent approximation for a single family home in a good area, built in the last 20-25 years? I was thinking it might be high if the tenants take good care of it, and if the property is new-ish. On the other hand, are the Indianapolis seasons so severe that perhaps a lot of maintenance comes up that I am unaware of, and that these are in fact low estimates?

Pretty much lived all my life on the West Coast, and new at REI so thanks in advance for any insights you can offer!

-- Brent