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Updated almost 3 years ago,
Calculating SFH rental monthly expenses
Hey everyone!
I'm a new real estate investor looking in and around the Atlanta GA market for SFH rental unit. This will be my first time buying a house, and I'm currently in the process of analyzing deals. I have had a difficult time coming across ANY deals that don't have a negative cash flow, and I want to double check if I am running my numbers correctly (mainly my monthly/operating expenses.)
First - Should I be calculating for utility costs into my analysis, or should i plan for these costs to be passed on to the tenant, or a mixture of both? I''m not sure what the industry standard practice for this would be. If its a mix between landlord and tenant payment, who would pay for each of the individual utility costs (between water, electric, gas, garbage, lawn and sewer) If all of these are to be paid for by the landlord, approx. how much should i calculate for each of these costs? I am looking around Atlanta GA, approx. 3 bedrooms with a purchase price of around $300k
Also, I am accounting for about 7% of monthly rent to be set aside for monthly CapEx, does that sound about right?
Thanks!