Cash flow on rentals

[Victoria S.]

When discussing cash flow/month (not CoC) do you include maintenance repairs and vacancy in the calculation? If so, how much for each?

[Andrew Johnson]

Victoria S. So here’s your challenge: My vacancy where I invest won’t be the same as where you invest. I use 8% for modeling and it’s a little lower (hovers between 4%-5%) but I don’t know Overland Park nor do I know where you want to invest.

As for maintenance, I’ll just say 5%-10%. Again, I get my numbers from T12s and the risk adjust them up. I also look at the age of the property, how durable the finished are, etc. If your unit is all carpet and my bottom floor is stained concrete...well...our costs will be different. It’s a small difference but then start looking at brick vs. siding and 100 other small variables.

So the net result is that we can all give you what metrics we use but they could be off a huge amount.

And don’t get me started on utilities if they are owner-paid... 🤣