Insurance & Utility rates in San Antonio
Hey everybody,
I've been practicing analyzing as many deals as I can. But when I account for expenses I am having a hard time estimating the monthly insurance rates for a property in San Antonio and accurate monthly utility holding costs. I've been looking around for SAWS and CPS Energy rates but I know they vary based on house size, meter size, etc. So what should I be assuming as the expense for utilities and also insurance? All feedback is appreciated.
Thanks
Most Popular Reply
As I look at deals, I use rules of thumb like 1% Rule. The property has to do WAY better than 1% to even consider it as a rental. If it is being offered at 100k, it has to rent at about 1200 per month with very little rehab. If it is a pretty hefty rehab, I use about 50% of county appraisal as my purchase price. I also use the 70% of ARV minus repairs.
If it meets those rules, it MAY be a deal. Then I talk further with the owner. I would not really worry about how much insurance or electric costs. Its the bigger things that make or break a deal.
Use $500 for builders risk or on a rental use 80 per month for about 100 to 125k house. A few dollars here or there are not going to break you if you are buying right.