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Updated over 7 years ago,
Maintenance Costs in Metro-Detroit
Hello, After lurking on Bigger Pockets for a few months I am finally making some moves to invest in my first property. I decided to invest in Metro Detroit (not Detroit proper) since it is more affordable than where I live now and because it's where I grew up.
I have been pre-approved for a mortgage and have started some deal analysis of SFR, but am struggling to determine how much to assume for maintenance costs. I have been applying the 50% rule on top of PITI and property management, but am wondering if I am being overly conservative. On a $1,200 rental something more like 30% seems reasonable, which ends up being $4,320/year. I have never owned a home so I don't have a benchmark.
Does anybody have any guidance on what maintenance costs might be in an average year for a three-bedroom SFR in reasonable condition? By reasonable I mean not brand new, but not falling apart.
Thank you!
Celia