Help with a rental property

[Jorge Castillo]

Hi guys, i keep wondering if i should applly the 5% vacancy, etc to any rental properties wihout checking out income? like i have this rental property and when i do my nunbers having CoC return of 8% i give 5% in all categories from the rental calculator and 10% for property manager gives me a $75 montly, deff low....What you guys think ?

[Chris Seveney]

@Jorge Castillo

I never use standard numbers. For capex and repairs I will look at what needs replacement in 5 years and it’s cost and allocate towards that. I will run repairs by property condition and determine a cost

For vacancy I review the area and historical. But I always carry a min. Of 8% (one month)

Also depending on average tenant time I carry $ for turnover costs as well.