Are my assumptions reasonable?

[Thomas Loyola]

Hi BP,

We are out of state investors looking to buy our first property in Indianapolis or Columbus. Been having trouble finding properties that cash flow, so I’m wondering if our assumptions are part of the issue.

I use 10% of rents for vacancy, 10% for capex, and 10% for property management. Are these too conservative? If we are analyzing a turnkey property, is it reasonable to decrease the repairs and capex to like 5% each?

Any feedback is appreciated!

Thomas