Is your "other costs" for capital expenditures?

As a developer - there are over priced subcontractors/vendors, underpriced, and those in between - value engineering to gain best quality for expenditures is a must!

There are houses that I sold 3 years ago, which if I was in my current position I would have held onto...but at the time needed to turn and burn to build up capital, as we didn't have the track record or portfolio to borrow any more money from banks and had tapped the private money we had sourced to that point.As was mentioned on a relatively recent BP podcast, the 2% rule is no longer (with the exceptions of war zones...And so when you allow for capital expenditures and vacancy, you will probably NET the same return and a solid 1% built since 2000).Finally @Ryan Jones, while 1% deals are definitely still out there, they are getting significantly harder to find. 

As you have lived in the house and are very familiar with it, you should know in detail what the expected annual expenses will be (as well as any large Capital Expenditures you may have soon like a roof, HVAC, or water heater replacement). 

- How are you able to reduce maintenance costs, capital expenditures and move-out costs?

They'll also subtract a little from your reserves for personal expenditures based on your monthly bills which is in your PFS (above). 

., laundry facilities, pet fees).Fixed Expenses: Include mortgage payments, property taxes, insurance, and property management fees.Variable Expenses: Include repairs, maintenance, utilities, and any unexpected costs.Capital Expenditures: Set aside a portion for future big-ticket items (e.g., roof replacement, appliance upgrades) as a reserve.3.

Account Closed  That's correct -- the broker (who also owns the property management company) had full access to actual operating data but chose to omit these larger expenditures with the justification that they were non-recurring and therefore wouldn't be representative of future operating costs. 

Hey Bruce, One way to add this into your valuation would be to take a reasonable quote and include it as a capEx expenditure at year 4 or 5 in the cycle.

It is the gross income minus major capital expenditures. i.e.