Tips on Estimating Expenses when Analyzing Deals

[Chad Slagle]

Hey Everyone,

I'm just starting to analyze deals and have never bought a property before so this is brand new to me. How specific do I need to be when I am estimating expenses for deal analysis? For example, do you guys use the numbers on MLS listings for utilities, taxes, insurance, etc. or would you actually call up utility and insurance companies to get quotes. Same goes for vacancies, CapEx, repairs, property management and HOA fees. Are there standard percentages that you guys use when estimating (e.g. 5% of gross rent allocated for repairs) or should I be more in depth. At this point I am just trying to screen properties to know if they warrant looking into, and I know that I need to be as precise as possible after the offer when doing my due diligence, but how specific do I need to be with the expenses when trying to figure out if a deal is worth my time? Any help is appreciated.