Figuring Expenses South Florida Market

[Ian Hamer]

I have been looking at properties in Palm Beach and Broward County 8 units plus. What percentage of gross income should you figure for expenses if not provided on rent rolls? Most say 30%

[Lucas Machado]

Originally posted by @Ian Hamer:

@Lucas MachadoThen the question is when I get expenses on potential properties sometimes it comes out less than 20%   Should I be suspicious those numbers from the seller?

Yeah, you want to see proof of those numbers before you commit to the deal - even if the expense number the seller gives you sounds reasonable...'Trust but verify.' 

If their expenses are < 20%, they are most likely not factoring in maintenance, management, and vacancy...And probably underestimating other expenses.