Financial Analysis of Future Cash Flows

[Jarrod B.]

Hey all,

I'm in the process of putting together a future cash flow projection on my investment properties and am up in arms in regards to what annual increases I should plug in for Taxes/Insurance/HOA and rent increases. It seems like these numbers are quite arbitrary and common sense tells me that they should increase with the rate of inflation (I just plug in 3% even though I believe it's closer to 2% currently). So I guess my question is, how or what do you all use for annual increases for Taxes/Insurance/HOA and rent increases.

I currently am using 3% for Taxes/Insurance/HOA increases and 1.5% for annual rent increases. This is a conservative measure in my opinion, but conservative is good. Thanks for your help.