Rental Expense Numbers for Central PA (Harrisburg area)

[Joe P.]

I've been running numbers on rental properties in the Harrisburg area in preparation for buying my first property next year. I am curious to know what folks in the area are using for maintenance and capex numbers. I've read a lot of different things but I figure it varies for different parts of the country. I know it probably varies depending on the street and the individual house too but as a newbie without a lot of experience what would be some good numbers to quickly run the numbers on properties as I browse through the MLS?

I was using 6% capex and $100/month/unit for maintenance but I'm thinking the $100 maintenance number is a bit high.  I'm also not sure a percentage would be good to use for either of these since varying rents don't necessarily correlate with these expenses.  I'm thinking maybe $120/month/unit for both.  Thoughts?

[David Krulac]

@Joe P.

It depends on the building. Generically I use 5% vacancy and 5% maintenance.  But if the building has just been rehabbed, expenses should be lower, if its older and neglected then expenses are higher.

Why are you waiting until next year?  Don't wait to buy real estate....

David Krulac