Looking For Advice On Analyzing Properties

[Patrick Williams]

Hi,

I'm currently looking to buy my first house hack and I'm already preapproved. I've spoken with multiple real estate agents.  I'm stationed in Great Lakes, IL.  I'm curious to know how much people are accounting for repairs, vacancy, capital expenditures, etc. as they are analyzing different deals.  I want to make sure that when I go through and analyze a property I am actually making reasonable assumptions on what my expenses and reserves will be as well as what I can charge for rent.

[Karl McGarvey]

The amount I factor in depends on the property. If a property has brand new A/C and Roof I plan for less CapEx, but if its an older property I wont hesitate to set aside 10-15% for repairs/Capex in my ProForma. Keep in mind while you are accounting for these numbers, you are still getting paid that money and putting it in the bank.