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Updated almost 6 years ago,
Rental property calculations
Looking to purchase my first MFR. I have been researching for long enough and I am ready to purchase my first one finally. When doing my calculations to make sure the property is cash flowing I am curious what others are using for vacancy rates, cap ex, repairs/maintenance and property management percentages of gross rent in the South Shore Massachusetts area? Prices are high on most properties in the area and by the time I figure all these costs in with the mortgage and the percentages I've been using, there isn't much cash flow left over. Also what are investors in this area looking to cash flow per door? I believe any market can work it's just finding the right property but I would like to make sure Im using the right calculations. I haven't had much luck finding vacancy rates in the area and know that cap ex is dependent on condition of property but looking for ball park figures in my specific area. Thanks in advance BP.