Updated over 2 years ago on . Most recent reply
Analyzing Potential First Deal
Hi everyone, I am in my early twenties and looking to get into the real estate game. I am looking at purchasing a multi family property in Northern New Jersey, probably in the Bergen County/Hudson County area. When looking at potential deals, I use the rental property tool to quickly run the numbers to see if it something worth looking further into. My question is, what is the best way to accurately predict expenses such as utilities, insurance and capex? Also would love to hear any other tips everyone has for a beginner such as myself!
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#4 House Hacking Contributor
- Investor
- CO
Utilities: call the local providers
Repair and Maintenance: depends on the condition & age of the house. I start with $100/unit then adjust after inspection. New houses, you can reduce that a lot.
Capital expenses. Same as above. Ex: if you are 10 years into a 30 year roof, figure out how much a roof cost in your area and prorate.
Insurance: Call an insurance broker or company
After running running the research for a few properties you'll get a feel for it. I would also recommend finding an experience investor for a second look.