Quick question regarding expenses

[Cory Brown]

Thanks in advance for any opinions.

I'm practicing analyzing deals. A pro forma from a turnkey company has cashflow on a property listed as 220/month, and the bigger pockets forum has it listed at 130. The difference is that the pro forma doesn't list repairs/maintenance and vacancy losses (although it does estimate for them). Should I include vacancy and maintenance in the monthly expense and subtract it from the cash flow, or keep the cash flow at the higher number (keeping escrow's for the vacancy/repair) when calculating ROI?

[James Wise]

Originally posted by @Cory Brown:

Thanks in advance for any opinions.

I'm practicing analyzing deals. A pro forma from a turnkey company has cashflow on a property listed as 220/month, and the bigger pockets forum has it listed at 130. The difference is that the pro forma doesn't list repairs/maintenance and vacancy losses (although it does estimate for them). Should I include vacancy and maintenance in the monthly expense and subtract it from the cash flow, or keep the cash flow at the higher number (keeping escrow's for the vacancy/repair) when calculating ROI?

 There are no rental properties that will be maintenance free. All rental properties will also experience periods of vacancy & non payment of rent, it's just part of the business. So to answer your question yes you need to account for both of those things as they are a very real part of real estate investing.