Estimating Expenses

[Shantul Nigam]

I live in CT and I need help estimating expenses for a multifamily unit (2-4 units)..

I understand that you should use the 50% rule or the 60% rule but I am finding that these don't make sense when the rents are out whack...

So... I was looking at the following list of expenses:

R/E Taxes

Maintenance

Management

Sewer

insurance

Garbage

Water

Hot Water

Heating

Electric

Advertising

Corporate

Cleaning

Council Rates

Gardening

Agent Fees

Capital Works

Stationery/Phone/Postage

Travel

The have several of these done... like R/E Taxes... maintenance and management using 10% each. Struggling with the rest... Sewer, Insurance, Garbage, Water, Heating and Electric... I believe these are the key to evaling the property. Is there a formula that you use to estimate these?

Thanks in advance.

[Frankie Woods]

You've covered the most important expenses.  Usingthe acronym VIMTM is useful: Vacancy, Insurance, Management, Taxes, and Maintenance.  Most of the other expenses you've listed can be transferred to the tenets.