Share an Austin rental cost sheet?

Question

About to buy a duplex, guy is asking too much for the area and I'm hoping to support my numbers with a spreadsheet. Monthly expenses I'm not sure about are, for example, pest control fees, insurance, I think property managers go for around 7 - 8%, trash, water, city cleaning fees, anything else? Just looking for some specific number examples, thanks

Kris Wong · Answer

Duplexes are residential, and residential RE is valued based on comps. That being said, BP has an excellent "calculator" for doing your analysis on this type of property. Out of the expenses you mention, property management typically runs 8% in this area, you shouldn't have to worry much about pest control, unless you're expecting less than awesome tenants, and utilities (including trash, water, etc...) are generally handled by the tenants, though that does vary property to property.

Brendon K. · Answer

Sorry, yes, I'm trying to estimate monthly expenses so I can make sure that once I move out it'll be a cash flowing property. Expenses that come to mind:

• Lawn (I think it's around $50-100 /mo)
• Repairs (budgeted per month, no idea how much to budget)
• Insurance (Got a quote from geico for 1100/year for one property, can get more quotes as I need to)
• Capex
• Potentially others that I'm not aware of
• Property management (seems 8%  is common)

I was looking at this blog post but was hoping to get some local weigh-ins on it.

Brian Vaughan · Answer

Are you trying to estimate market value or estimate monthly expenses?  If market value,  you need to be finding recently sold sales of similar properties, as recent and as near to the subject as possible.   Good luck.

Shawn C. · Answer

Hello Brendon C.,

You may want to also get comps that are really specific for this property. You may even want to get them so specific that they target the same block and street.

I also know someone that has a property management company and I believe he charges 6%

I hope this helps.

Share an Austin rental cost sheet?

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