All Forum Posts by: Riley Bullert

Hello, 

My husband and I are about to make our first rental purchase (which seems like a good deal) but when I run the rental calculator I run into a big problem in terms of variable expenses. The house is a brand new build, so in theory variable expenses should be very low. The home is a 3bed 2bath Single family home in CA, and we are hoping to get it for 240k-250k. We are related to the builder who is happy to sell to us drastically lower than the market price, which is what we thought made the deal work. Rent goes for about 1800 for nearby comps. 

If I were not to take into account CapEx or significant variable expenses cash flow is about 100-200$/mo and if we use the percentages recommended in the calculator it changes drastically to about -200. However I am SO new at this and don't want to make a grave mistake in not taking into these factors.

Would greatly appreciate any insight on calculating home expenses on a new build rental.