New RE Investor

[Michael Herrmann]

Hi,

My name is Michael and I am a 29 year old from Murfreesboro, TN looking to invest in my first rental property (thinking a single family or duplex). I am reading some books from BiggerPockets and I am having trouble with the calculations for expenses. Does anyone know the figures for these expenses offhand possibly - Vacancy Rate, Capex, Property Managers?

[John Williams]

Hey Michael, I am a property manager up here in Clarksville, TN (check out our market if you have not already). You can use generic estimates for each of these expenses (which is advisable), but then readjust those estimates for any specific property you are looking at (seriously). For example, CAPEX should be budgeted much differently on a new construction vs. a much older, non/renovated property.

[Karen Wanamarta]

@Michael Herrmann don't forget cost of capital and closing costs. I use roughly 5% vacancy, 3-5% capex, and 8% PM. If you only have one property I would self-manage. The hardest part is finding good tenants. 

[Michael Smythe]

@Michael Herrmann try using the BP Calculators