Why use percentages instead of real numbers?

[Ken Virzi]

When crunching the numbers all I seem to see people using are percentages. Obviously some things are, such as mamagement. But most costs are t based on percentages. For example, a roof costs the same for a building that rents for $900 vs one that rents for $1400. With a capex percent based line the $900 rental would have less then the $1400 rental but the actual cost would be the same. 

Add replacing or fixing a toilet, lawn care, sometimes even insurance and it seems to be most costs would be a higher percent the lower the rental amount. 

If we used actual numbers when looking at the numbers would anyone buy a place with less than $1,000 under one roof?

[Peter M.]

Agreed. That's why I think people should make their own calculators instead of depending on forms. If you make your own spreadsheet you will understand the numbers better and you can change your inputs to $ or % depending on the situation. Sometimes it is easier to use percentages if you don't know actual figures but unless you really know what percentage to use, you are taking a risk by just copying what other people suggest. That is why it is of the utmost importance to know your market.