All Forum Posts by: George Young
George Young has started 2 posts and replied 6 times.
Post: Rental Calculator - Numbers to Use for Maintenance, Vacancy, etc. (Columbus, OH)
- Posts 6
- Votes 8
Quote from @Anthony L Amos Jr:
Quote from @George Young:
I am starting out in the real estate investing world, and am running the numbers for some listings in B and C+ neighborhoods in the Columbus, OH market.
For the rental calculator, I assumed:
Maintenance and repair = 5% of rent
Vacancy = 5% of rent
Capex = 5% of rent
Management fee = 8% of rent
Leasing fee = approximately 8% of rent (assuming typical lease lasts 12 months and leasing agent / property manager charges 100% of first month rent)
Closing cost = 1.5% of home purchase price
Are these realistic assumptions to make, in particular in B and C+ neighborhoods in the Columbus, OH market? Any insight is much appreciated.
Thanks all!
Typical management fees for beginners is 10%. Is this for Single family or multifamily properties?
It will also depend on the condition of the mechanicals etc. i.e. brand new a/c and furnace then you may initially be able to reduce you capex to 3%-5% on SFH
Thanks, Anthony.
I am looking at both SFH and MFH. Would there be an appreciable difference between the two with respect to any of the metrics?
I assume 10% management fees is in addition to leasing fees, correct? In that case, would my assumption of 12 months length of lease and 100% of leasing fee be typical? These two combined (more than 18%) seems a lot paid to the property manager (granted, I understand their importance).
For a typical house (i.e. does not have brand new a/c and furnace), would you estimate Capex to be more than 5%? And that is in addition to 5% maintenance and repair?
Post: Rental Calculator - Numbers to Use for Maintenance, Vacancy, etc. (Columbus, OH)
- Posts 6
- Votes 8
I am starting out in the real estate investing world, and am running the numbers for some listings in B and C+ neighborhoods in the Columbus, OH market.
For the rental calculator, I assumed:
Maintenance and repair = 5% of rent
Vacancy = 5% of rent
Capex = 5% of rent
Management fee = 8% of rent
Leasing fee = approximately 8% of rent (assuming typical lease lasts 12 months and leasing agent / property manager charges 100% of first month rent)
Closing cost = 1.5% of home purchase price
Are these realistic assumptions to make, in particular in B and C+ neighborhoods in the Columbus, OH market? Any insight is much appreciated.
Thanks all!
Post: New member looking to invest in Richmond
- Posts 6
- Votes 8
Quote from @Melanie Thomas:
Hello and welcome to the community!
It's great to hear you're taking the initiative to explore real estate investing opportunities outside of your immediate locality. The Richmond market has a lot to offer and diversifying your investments geographically can be a smart strategy.
There are plenty of members here who are knowledgeable about the Richmond area and can provide helpful insights. Remember to use the search function to look for previous discussions about investing in Richmond. You'll find threads discussing neighborhoods, property types, rental rates, local regulations, and more.
Additionally, we encourage you to participate actively in discussions and don't hesitate to ask questions - whether about specific properties, market trends, or just general tips about long-distance real estate investing. The collective wisdom of this community is a valuable resource.
Excited to see your journey unfold as you dive into the Richmond market. Once again, welcome aboard!
Best,
Melanie
Thanks Melanie. I have benefited tremendously from reading previous discussions about Richmond, and excited about connecting with members familiar with Richmond!
Post: New member looking to invest in Richmond
- Posts 6
- Votes 8
Quote from @Steven Foster Wilson:
Hi George, welcome to BiggerPockets! This is surely the best place to start networking and learning. I always recommend the book “Rich dad, Poor dad” by Robert T. Kiyosaki to anyone starting out. Start listening to the BiggerPockets podcast starting at the very beginning and start growing your network, look on Facebook/BiggerPockets for different events, find a mentor doing what you want to do, and get to know the local lenders/brokers. All the best to your real estate journey!
Thanks Steven. I appreciate the kind words, and thank you for your recommendation.
Post: New member looking to invest in Richmond
- Posts 6
- Votes 8
Quote from @Josh Uhlenkamp:
Welcome to the area George. I am in the Hampton Roads area, not too far from Richmond. The prices in this area are much more investor friendly, especially for someone just starting out. If you need insight on the area I am happy to share 😊
Post: New member looking to invest in Richmond
- Posts 6
- Votes 8
Hello, I am an out of state aspiring real estate investor looking to invest in Richmond. I am based in DC, but the rental investment market here does not seem to make much sense for me. Excited to learn more about Richmond and make connections here!