Questioning the numbers

[John Lewellen]

No deals yet but am looking. I keep “running the numbers” and I’m concerned I’m missing something. I’m looking at properties, 2-3 unit multifamily and single, with little to no repairs needed.

Looking at:

Estimate Rent/ income

Mortgage, tax, insurance

Vacancy (10%)

Maintenance (5%)

Cap X (5%)

Property management (10%)

Evaluating by rent to value % , cash on cash %, ROI

Am I missing or overlooking anything?

[John Warren]

@John Lewellen make sure you network with local investors to check your percentages. You are looking for the right things, but you will want to check local numbers. For instance, in my area here in the Chicago suburbs real vacancy is under 5%. If I budgeted 10% for vacancy I would never buy anything!