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Updated over 3 years ago on . Most recent reply

User Stats

7
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3
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Josh Stamper
  • Investor
  • Central/Eastern Kentucky
3
Votes |
7
Posts

For New/Small Investors, include you as PM in your calcs/ROI?

Josh Stamper
  • Investor
  • Central/Eastern Kentucky
Posted

For new and smaller investors, when you use BP Rental Calculator, if you will be doing your own property management, do you set Property Management Fees to 0% and accept the Cashflow and CoC as true? Or, do you set it to PM Fees to 10% to see the "true" Cashflow and CoC numbers? Or, in general, when an REI says Cashflow and CoC, do they always assume that those numbers include 10% PM fees? I don't want to force numbers to justify the property, but for new and small investors, I want to make sure I'm not missing out on deals, either. Thanks

Most Popular Reply

User Stats

793
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620
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Aaron W.
  • Rental Property Investor
  • Northern Virginia
620
Votes |
793
Posts
Aaron W.
  • Rental Property Investor
  • Northern Virginia
Replied

@Josh Stamper Do you plan to manage the property yourself forever? Is there a possibility you may want to have someone else manage it in the future?  Personally, I would add PM costs just in case I don't want to manage it any longer and know it will still cash flow positively.

Best of luck!

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