Rental Property Expense Formula's?

[Elliott McLeod]

Hello all,

lets talk about rental expense's.. I currently don't have much of a history of managing rentals so I want to get a good idea before jumping into one.

Gross rents (assuming renter pays WSG & Utilities)

- Principle & Interest

- Property Taxes

- Property Insurance (Property Value / 1000 * 3.50 for annual estimate)

= Gross Profit

- Property Management (10% of Gross Rents)

- Cap Ex (I figure on 10% of Gross Rents) (new roofs, painting, furnace, etc)

- Vacancy (I use 95% in my market) (could probably get away with even less)

= Net Income

Does anyone have anything out there that I should be accounting for that I'm not looking at?

any comments welcome :)