Estimating expenses, advice needed

[Daniel Lozowy]

When you estimate expense on an apartment building, I know it's recommended to go with 50% of the gross income. But what about areas where rents are very high? What's the best way to be accurate and conservative at the same time.

[Erik Hatch]

Be conservative and raise the expenses. Pro forma I’d use as a start but prove it out with actual bank statements, receipts, utility bills, work orders....