No More Guessing Numbers

[Kevin Izquierdo]

As a new investor living and looking to invest in NJ, where do I get certain numbers for the Deal analysis? I seem to be guessing these numbers.

-Loan Interest Rate

-Years amortized

-Cap Ex

-Vacancy

-Sewer, Garbage

Any help is appreciated :)

[Karen O.]

The BP tools shows a little box next to each item.

Loan int rate you can do a quick search dor current loan rates. Also check your bank's website. They may list it.  I round up .5%. Just in case things change. I think it's better to overestimate the costs to service a mortgage than to have underestimate it.

Years amortized is the term of your loan.  30 years is standard for sfh and 2-4 mfh.  But if you want to be ambitious you could use a shorter term like 15 yrs

Capex When estimating in the BP toolkit you should add 5-10% because something is going to break and setting aside these funds from your monthly revenue will help you be prepared for those events without having to make a cash infusion from your own savings.

Vacancy is an estimate.  With luck you won't have many.  But 5% seems to be norm -10% is more conservative. You might prefer something in between. Remember this isn't an expense really but revenue not collected.

Sewer/garbage.  Depends on your location and whether or not it's an expense you can pass on to a tenant.