Variable Landlord- Paid Expense Percentages

[Casey Adams]

Hello Everyone!

I've seen previous posts that are a few years old when searching and just wanted to clarify what I should be plugging into these percentages. I've seen David Greene plug 5/5/5/8...but that seems pretty light for potential expenses. I've played with 10/10/10/10 and that has essentially killed any deal I've found no matter how good ARV is with current rates. However, if I'm not utilizing those percentages (5/5/5/8) it's getting really difficult to find little if any (mostly negative) cash flow on potential deals.

I know the high rates are making it rough and you want to marry the property and not the rate, but if I could get some advice on what fellow BRRRRers are using for their numbers I would appreciate it, if not for anything for a reality check for what I should expect.

I recently got approved for my HELOC and I'm about to take the dive so I'm trying to be as conservative as possible so when I find the right deal I can snatch it up.

Thank you everyone for your help and insight on this!

Casey

[Michael Smythe]

Actually, it should depend on the property Class you invest in.

The numbers you reference are for Class A rentals. 

The numbers should be higher for Class B, then even higher for Class C.