What % of NOI do you use for estimating expenses?
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Austin Negron
Investor from Boston, MA
posted about 1 month ago
Goodmorning BP.
I'd like to hear your general rule of thumb for estimating expenses on a MF properties after it's stabilized in the Boston area. Of course everyone has their own formula for what they're looking for but I've heard anywhere from 32-50%.
Example if monthly rent is $5000 monthly expenses are $1,600 (for 32%) - only taking PITI into account
It seems like seasoned investors have found a comfort zone assuming between 35-38% of NOI.
What do you think?