Hoping for feedback on calculating potential deals

[Michael A.]

Hi everyone - Happy New Year! I've resolved in 2017 to actively seek mentorship and guidance more regularly, so I'm putting myself out there and would really appreciate your input. 

Is anyone willing to critique the spreadsheet I use to calculate potential buys, or perhaps share their own? It's from Keller's HOLD book which I found to be very inspiring. I'm concerned that it is overly conservative and leading me to pass on just about everything i come across in the Richmond, VA and Philadelphia, PA markets I am particularly interested in. The file is below if anyone is interested. Mainly concerned about estimated expenses (insurance, taxes (1.2% per the city we're interested in), vacancy estimate, property management per quotes received, and small maintenance reserve saved each month).

Thinking it's better to be conservative than not, but don't want to play it so safe on paper that we never move forward with anything.

Appreciate your feedback!

HOLD Spreadsheet

[Irfan Raza]

I agree with @Adrian Stamer that your Maintenance reserve is very low especially for the type of property you will most likely be able to obtain in point breeze for ~100k.  I purchase vacant properties in Philly and do significant rehabs on the front end and while my repair costs are typically less than $50 per month/per unit, I still allocate for future capital expenditures, which brings the number higher.  Also, landlords in Philly typically pay for water (~$50 for ~1k sq ft.), but I am seeing this trend changing.   Overall, your spreadsheet could be torn apart 100 different ways by 100 different investors and I am sure if I posted my spreadsheet I would see the same.  I think it is good to have a spreadsheet, keep in consistent, and use it to compare deals to find the best deal for you rather than trying to calculate how much money you are going to make.  Good luck! If you have any questions about PB feel free to reach out, I hold several rentals there.