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Updated about 7 years ago on . Most recent reply

User Stats

57
Posts
23
Votes
John Voychick
  • San Diego
23
Votes |
57
Posts

return on cash flow property question

John Voychick
  • San Diego
Posted

I'm been looking through the site and am having a little trouble finding what I'm looking for.

Basically I'm looking at a property for 67k renting for 760/month

The TK company claims $408 in cash flow but that doesn't account 10% for PM, maintenance, vacancy [although they have a 3.5y average], rainy day fund, and other operating expenses.

Can someone point me in the right direction or suggest what they use? I find that the calculators ask me for numbers and percentages that I do not know just yet as I am new to this.

Thanks in advance!

John

  • John Voychick
  • Most Popular Reply

    User Stats

    27
    Posts
    9
    Votes
    Aaron M.
    • Investor
    • Kingston, PA
    9
    Votes |
    27
    Posts
    Aaron M.
    • Investor
    • Kingston, PA
    Replied

    Some typical numbers for expenses are

    5% vacancy
    5% maintenance
    5% cap ex
    10% property management
    utilities that you would pay
    Taxes
    Insurance
    Debt service

    The percentage for maintenance and cap ex may be higher depending on the condition of the property

    Loading replies...