What % Do you Use for Repairs, Vacancy, Cap Ex, Mgnt Fees?

[Jeffrey R. White]

I am new to BP and signed up for BP Pro Subscription and am diving right in on property analysis.  My goal is a property by the end of October.

IN regards to the Rental Property Calculator I am wondering what are the typical numbers you use for:

Repairs, Vacancy, Cap Ex, Management  Fees

I have run 10 properties in 2 days and am going:

Repairs - 5%

Vacancy - 5%

Cap Ex - 5%

Management Fees- 8%

Are these numbers in the ball park?  Would you pad these a tad higher for a little more $ reserves?  I got these numbers by listening to various podcast.  I would love to hear your thoughts.

BTW I have found 1 property (4 plex) with a cash flow of $1190.00 and a CoC Return around 16%. Calling a realtor tomorrow!

Thank you!  Jeff

[Jay Hinrichs]

Originally posted by @Sam Stabler:

@Jay Hinrichs This is why you can never truly evaluate COC returns when others post their numbers. Its all so subjective and relative to that individual's calculations. Where one person may adjust 40% in operating expenses another will adjust 23%, so you get COC returns all over the place, even in the same geographic area of a subject property.

I find it somewhat humerous were the buy and hold crowd likes to say banking on appreciation is gambling and they are not gamblers.

Yet the same investor will run numbers that simply are not realistic and gamble that they can hit those numbers to justify their spread sheet and COC calcs.. When in reality NO one knows what they make until they sell.. if they don't roll up in 1031 s over and over.. those that come into the rental game buy a few doors then determine heck this is not worth it and have to exit.. unless they are in high priced and appreciating markets will generally take a capital loss when you figure you have to get the house ready to sell.. sales costs and recapture..

I know its been a shocker to me when i sold a few places off that I did not want to roll into something else..   its a LOOOONG game for sure.