Are my analysis expenses too high?

[Brandon Dietz]

Hi all, 

I am currently analyzing my "baseline" expenses for my property analysis and wanted oppinions. 

Currently in Ontario, Canada, do some of these seem too high or unreasonable? 

I know they say that most properties aren't a good deal, but after analyzing a bunch of them I am wondering if I am just being too strict with my requirements. 

Note: Vacancy / Property management depends on cost so thats why they are zero. 

Thanks in advance, I know its probably best to use the BP calculators, and not do spreadsheets but I'm trying to do as many as I can myself. 

[Josh Young]

@Brandon Dietz

Expenses should be based off a percentage of the rent, This is where I usually start: vacancy 4%, maintenance/repairs 4%, Cap Ex 4%, property management 8%. This totals 20%, but if you have an older property or class C property then you might want to jump up to 25%. So if the rent is $2000 per month you'd only count $1500-$1600 towards cash flow. Taxes and insurance can vary a lot depending on where you are, but I lump those in with my debt to make what's called PITI (Principle Interest Taxes and Insurance), so if your PITI payment is less than 75-80% of the rent then the deal should cash flow.