Iowa City / Eastern Iowa Calculator Assumptions

[AJ Smith]

Hi all,

For all you Duplex Investors in the Iowa City / Eastern Iowa Area: I'm curious what assumptions you make when running your numbers? I am looking for your conservative assumptions when running costs like Utilities, Insurance, Property Management, etc, because I want to improve my process when analyzing homes. I also only account for utilities when the plexes are not metered separately, otherwise I assume that I will be able to put in the rental agreement that tenants pay for utilities.

As a point of comparison, here is what I normally estimate:

• $100 Electricity, $100 Water and Sewer, $100 Insurance
• 5% vacancy, 7% Repairs and Maintenance, 7% CapEx, 10% Management Fees
•  2% Annual Income Growth, 2% PV Growth, 2% Annual Expense Growth, 9% Sales Expense
• $50 monthly mowing expense if it has a lawn

I look forward to learning from you all and your experience!