Holding Costs in Phoenix, AZ Market
Hello,
I am in the Phoenix, AZ market and I need help calculating holding costs. Whenever I calculate my holding costs, it seems very high. My breakdown looks something like this:
Holding Costs = ((Purchase price+renovation costs)*12%) + Taxes/month + $300/mo. electricity costs + $100/mo. Water costs + $150/mo. home insurance + $33.33/mo. garbage rent and disposal + HOA fees/mo. + Misc.
My holding costs usually seem to be $15-20K for the entire job.
But, I have seen other investors holding costs at $1100 TOTAL over a year long project. My projects never forecast more than six to nine months.
What can I do to adjust my holding costs to make them more accurate?
Thank you for the help!