Estimating Expenses When Analyzing Potential Rental Property

[Omer Sultan]

Hello BiggerPockets Community!

I'm an aspiring real estate investor, and I'm looking for some insight into how I can properly estimate expenses when analyzing a potential rental property. I understand that certain properties will allow for the tenants to be responsible for their own utilities, but let's assume that that's not the case. I've been using the following figures, which I've sourced from my family's single-family home (as most of the properties I've been looking at are similar in size):

- Property Insurance = $175/month

- Maintenance & Repairs = $200/month

- Electric = $400/month

- Water = $200/month

- Misc. = $85/month

I've also been calculating Mortgage Payments, Property Taxes, and a 5% Vacancy Reserve separately. Do these figures sound about right? Am I missing anything worth noting?

Thanks in advance BiggerPockets Community!

[Anthony Rosa]

How far upstate NY? Anything with 60-70 miles of NYC has high taxes unless its a distressed area.  The further away from the city the less you pay in price and tax but tax is still high and can easily eat your profits.  What is your estimate for heat if its not electric?

Your electric and water estimates are about right.  Natural gas to heat up a 2000SF home at 69F is about $650/month, easy. Gas delivery fees alone are about $200/month.