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Updated over 5 years ago on . Most recent reply

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37
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8
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Brandon Phillips
  • Real Estate Agent
  • Des Moines, WA
8
Votes |
37
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Understanding the risk of investment

Brandon Phillips
  • Real Estate Agent
  • Des Moines, WA
Posted

I want to put in an offer on a triplex Tacoma WA. What are some calculations I can run to understand how purchasing the house will impact me? How much of a safety net of capital should I keep after closing in case of vacancy or unforeseen maintenance or god forbid a crash?

Most Popular Reply

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863
Posts
554
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Jake S.
  • Rental Property Investor
  • Minnesota
554
Votes |
863
Posts
Jake S.
  • Rental Property Investor
  • Minnesota
Replied

Hey @Brandon Phillips, I'd highly recommend using BP's deal calculator to analyze this.

When are you buying 1-4 unit properties always budget for...

- Mortgage

- Taxes/Insurance

- Management (8-10%)

- Vacancy (5%)

- Repairs/CapEx (10%

Then budget aside at least 3 months of reserves for worst case scenarios

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