All Forum Posts by: Jeff Brown, Jr

@Katie L. Thanks for your help clarifying a few things for me. I am convinced that, at least initially, LLC is not the appropriate choice for me. I have a large Umbrella Insurance policy already in place and will expand it as needed.

Hello,

Am looking for some recommendations for either CPAs or Real Estate Lawyers to help me set up a Sole Proprietorship. After researching, it seems like this is the way to go when just starting out in REI (as the costs for LLC in CA are pretty high).

Thanks!

@Account Closed Thanks!!

@Darryl Putnam Thanks for clearing that up!

@Kenneth Garrett. Great, thanks for your help!

Hey everyone,

Recently joined the community, but have been interested in Real Estate for awhile now. I was hoping to get some insight regarding expenses and NOI. I have read different things and some estimates vary greatly (swinging potential properties from good investments to poor).

I live in Fresno, CA and will be purchasing my first rental in the area.

Here is what I have estimated:

• Annual Property Management: 10% of gross collected income
• Annual Vacancy Rate: 5-10% of gross collected income
  • 2017 -> rate was only 3% (7% was highest over 10yrs)
• Annual Release Fee: 50% of 1st month’s rent (not even sure what this is, but have seen it included)
• Annual Property Insurance: 0.8-1.2% of property purchase price
• Annual Maintenance: 5-15% of gross collected income
• Annual Cap Ex Reserves: Approx $1,500 (aware it depends on the age of property/components)
• Annual Property Tax: Approx 1.2% Purchase Price

Do those numbers/percentages seem reasonable?  

Any thoughts or insight would be greatly appreciated!

Jeff