How do estimate tax & ins increase in analysis

[Khari F.]

If tax and insurance are variables that can increase year to year - do you allocate reserves for that or is that what cash flow buffer and rent raises are for? what events can cause a big jump for those?

[Evans Wright]

Taxes can go up but that generally happens when a reassessment is scheduled by your county. The frequency at which that is conducted is determined by the county.  The BP calculator lets you factor for expenses increasing year over year by however much % you put in. Typically I factor about increase 2-3% but you also factor in the same in rental increases.