Getting an estimate on the expenses

[Chris Duzan]

I've been reading several things recently that have mentioned getting a rough idea of the return of the property to see if it fits your criteria. I know you can get an idea on the taxes on the property and the amount of the monthly mortgage payments, but how do you get an idea of the expenses before taking the property under contract?

One of the books mentioned finding comps and determining the percentages of each expense to quickly find any discrepancies. (ie. Water ~ 5%, Electricity ~ 10%, etc.) So does that mean I need to get these properties under contract just to find out their real expenses only to turn around and tell the seller that I don't actually want the property?

Thanks ahead of time for any assistance anyone can offer me.