Rental property expense

[James Ahern]

When running the numbers on a potential rental property what are the main expenses to consider? How much should you set aside for vacancy, repairs and cap ex?

[Justin Wilson]

I use 10% of the total rent for management and 4% - 7% for maintenance and CapEx. I also use 10% vacancy minimum. The numbers vary based on the age, condition, and location of the property of course, so I use the higher percentages for older and lower class (class C) properties.