I was wondering if any of you have a good rule of thumb for estimating property taxes and insurance costs for residential listings? I know it's based off of zipcode, age, and sq footage, but is there any ballpark percentage number you use for the taxes and insurance costs? Any formula would help, lookin for some napkin math here.
Nope. Texas and the east coast pay 2x the property taxes I do. Insurance in MN is 3x higher than Vegas.
You have to find a property in the same or neighboring zip code that is as close as possible in size, bed,baths, etc. Then give yourself at least a 20% margin of error.
Taxes I'm not 100% on but unfortunately there's no formula that would help from the insurance side. It's not only based on the different filters as you mentioned @Chris Forza , but also the type (and amount) of coverage you prefer to carry on the property.
My best suggestion would be to reach out to an independent insurance broker who specializes in working with investors to learn what type of coverage you want on your portfolio and to obtain quotes from there.
Best of luck!
Thank you both for the insight!
I'm an insurance agent in NJ but in general you are correct there is no way to ball park and insurance cost b/c every house is different. there are a number of factors as you previously mentioned. Area you are insuring in, sq. ft. of dwelling, type of coverage you want on dwelling, age of major house systems such as roof, plumbing, hvac, etc. What you are doing with property and if you are living in it, your credit hx.
As suggested I would recommend an independent agent with multiple markets to access.