What are all the expenses to plan for in a rental property?

[Mitch Casey]

What are all the expenses that needed to be planned for in a rental property? What is a healthy monthly / annually percentage to plan for?

[Aidan Mulligan]

@Mitch Casey

The 50% rule says that half of your monthly rent will go towards expenses not including the mortgage.

The main ones I include in my calculations are:

Maintenance (7.5% of monthly rent)

Vacancy Loss (8.33% of monthly rent)

Management (7% of monthly rent)

Marketing (I don't factor this in usually)

Utilities (3% of monthly rent)

CapX (10% of monthly rent)

Tax (I find the tax for that city and home)

Insurance (I usually input $1000 as a place holder and when I get a better quote it's usually between $800/year and $1200/year)

Basically when trying to decide if a house is worth looking deeper at you'd take the the market rent, divide by 2, then subtract out the mortgage for that home and that's the starting point for your monthly cashflow. It's not bible but it'll save you from spending a lot of time looking at a house that wasn't viable to start with.