I am looking over numbers for a potential first property (I went very conservative I.E. inputting their asking price and a below market value rent). What are some average (I know it varies state to state and market to market) expense percentages I can expect to see?
@Justin Kalieb Bartram On sub $1000 per month property , I like to use a dollar amount for CAPEX, repairs and vacancy of $200-$250 per month. Roof cost $5000/25year life= $16.67 per month. Minor kitchen rehab $5000 every 15 years= $28 per month. Some where on BP there was a speadsheet of major components that you could use local numbers and get the exact amount per month needed for capex and then add in repairs and vacancy.
I'm afraid your property taxes feel low unless the home is very dilapidated and in a less than ideal part of town. You should be able to find the actual figure on any of the major listing sites.
I'm also uncertain as to whether or not you have insurance factored into your equation anywhere, which unfortunately will vary from property to property.
This is my first response to a post in a matter to try and help because I'm still learning myself. But looking at the report, your down payment isn't enough to cover 20% which would require PMI. If I have learned correctly PMI is roughly 1% which would add another $30-40 per month to your mortgage cost. Also, If the rent they are asking @ $600 is below market value and the property is only $47k that seems like a screaming deal at first glance. Be sure the rents are actually at those numbers. Great job estimated conservatively though. Any experts on who are helping analyze this. what are your thoughts?