I think I’m missing something when I analyze a deal

[Logan Graham]

I am looking into deals and trying to calculate the numbers to see what is a good deal and what isn’t. However, when I put in the numbers I feel like I am doing something wrong. I could really use some help to try and figure out how to analyze a deal and have the correct numbers going into it.

[Steve DellaPelle]

@Logan Graham

PITI (Principal, Interest, Taxes, Insurance)

     - All of the above can be concrete based on exact calculations except insurance which you should overestimate.

- Also do not forget PMI if you are less than 20% down, also overestimate

Cap Ex (8-12% depending on the size of the property and age)

Vacancy (8-12% depending on how long a unit sits vacant, tough to estimate)

Maintenance (8-12% depending on size of property and appliances)

Water/Sewage (sneaky expense, over estimate per person)

Other Utilities (Electric house meter, is it separately metered?)

Other (Snow removal, trash removal, landscaping, etc.) Estimate based on quotes

That is what I have on my list.

Good luck!