@Emanuel Eyssallenne shouldn't have a garbage expense, usually the tenants responsibility. Maintenance is a little high. I use 5% or a minimum of $50 per month. My repairs are usually a clogged toilet or a burner not working. Average of $150 per service call. And only about 1 per year per property. This allows me to build up reserves to paint on tenant turnover. Check to see if the HOA allows rentals if you decide to buy this.
Thank you! So my percentages for expenses are too high, I see. You would use 5% for maintenance or $50.00 per month for any property under $200K ?
And my vacancy I use 8% is that okay or too high?
And all utilities including garbage would be the responsibility of the tenant.
Did I understand that right?
I appreciate your help, Tim.
@Emanuel Eyssallenne 8% vacancy is what I use. That is 1 turnover per year. May seem excessive but if you have to evict a tenant and it takes you 2 months and a months rehab. You are out 3 months rent. I use 5% maintenance or $50 minimum. All utilities on a sfh should be the tenants responsibility. On a multi you have to inquire to see if the landlord pays the utilities.
Copy and appreciated!