Vacancy, Capex & Maintenance Factors for Multi Family Investment

[Dan Desler]

HI Everyone

I'm looking into investing in my first property and I'm specifically looking at Multi-Family Rental Properties in the Aurora Illinois market. 

I'm doing analysis on some properties that I think look like they have potential and I'm wondering if anyone uses % factors as a general rule for expenses such as Capex, Maintenance & repairs and vacancy rates. I know this depends on the market/property etc but if any one has any thoughts I'd love to hear.

I've been using 5% of net income for capex, 5% for maintenance, 10% vacancy,  plus mortgage, insurance, taxes, lawn & snow, advertising, license fees. 

When I compare the same property but instead using the 50% rule (income minus mortgage, tax & insurance) instead of breaking everything out my cash flow is $100 per month higher, so thought i'd ask.

Any thoughts appreciated!

Thanks

Dan