How to calculate maintenance expenses for BRRRR

[Steven Barr]

How are y'all calculating your projected maintenance expenses for BRRRR properties?

I know the rule of thumb for a traditional rental is 40-50% all in expenses (vacancy, prop mgmt, taxes, ins, repairs, CapEx, etc)..

But are y’all using a lower maintenance/repair rate due to the fact that the property was recently rehabbed? If so, what all in expense number are you using for calculations?

[James Alderman]

I use 10% of the max market rate for a worst-case scenario. Depends on the age of the house as well. I just fixed up a great home built in 2006, and I'd use a 5% there. For another that was built pre-1900, I'd leave it at 10% even after fixing up.