Assessing expenses for deals near Philadelphia

[Justin Moser]

BP gang

I am starting out this year looking to nab my first deal in western suburbs of Philadelphia as well as in gentrifying neighborhoods of Philly.  I have my strategy set and calculators warm but struggling to nail down a fast but reliable way to estimate expenses when assessing a lot of potential props.  Is 50% rule the best?  Is a different % better for this area?  Any assistance is much appreciated.

I should also say that I feel I have a good working hold on all the expenses to consider and how in the detailed analysis.  Just need the screening approach.  

 Thanks

cheers

Justin

[Matt N.]

Hi Justin,

For a quick and dirty calculation. (NOI - PITI)/2 is what I use to estimate cashflow and expenses for a buy and hold. This is a VERY rough calculation. And you'll see that I am simply assuming that after fixedmy expenses, I will keep half of the income and spend the other half on things like repairs, management, vacancy, etc. This comes from my experience buying and renting homes in C and B class areas.

I hope this helps. For more detailed analysis or just to talk more please feel free to send me a DM. I'm a realtor and investor who specializes in working with investors to find cashflowing properties. 

Cheers,

Matt