Help with the numbers

[Kelly Williams]

I am looking for resources with detailed numbers for a rental property. I plan on turning my current home into a rental property in about 1 year. I understand the 50% rule and the numbers as of now are looking good. A few numbers I am unsure of are 1. How can I estimate the cost of preparation and repairs for a new tenet to move in? 2. How much cash should I have in reserves in preparation for maintenance. The rental income will build up quick, but how should I prepare for the first 6 months or so? Thanks.

[Ali Boone]

I can give you a rental property calculator, but not sure that is what you need. I wouldn't look at the 50% rule either. As far as how much it will cost, I would call a couple property managers and find one you like to almost mentor you. They can explain what is required for a house to be rent-ready, and based off that you can estimate how much that will cost, and then after that expense you shouldn't need any money in reserves right away for maintenance because you'll have just done it. So that takes a pressure off, and from there just start saving everything you make from renting it out for a while and that will create a nice nest egg for future repairs.