Running Number? Two Part Question

[Adam Read]

When you are running your numbers do you use the Calculators here on the BP; if so do you run additional numbers along side it? 

If not how do you run your numbers?

I'm referring towards buy and hold, rentals.  

I'm new to real estate investing and still very much in the learning stage. Any additional information would be very helpful. I'm on the MLS listings practicing analyzing deals weekly to get a good feel for how the process works. I just want to make sure since I'm so new that I'm not over looking anything.

Thanks BP

[Nate Burgher]

Hey @Adam Read, welcome! 

I like to run my numbers through BP or through many of the nearly identical public spreadsheets you can find in the Tools > FilePlace section, all uploaded by fellow BP users. They all get you within +/- 2%. You'll never really know the numbers until you own your first property and have tenants in there, and even then, you still haven't been through all the headaches of bad tenants, capital expenditures (roofs, furnaces, etc.), repairs and all that stuff. 

Personally, when running my numbers I like to find my rents from Hotpads.com because I can look at pictures of other comp rentals in the area and compare quality. Vacancy I set between 5%-10%, depending on the area (assuming I know it), and then 10% each for repairs, capex and management. I do reduce maintenance, repairs and capex appropriately if the property is managed by an HOA that takes care of some or all of that stuff. Appreciation and growth (west coast) at 2%. Purchase costs at 4.5%, sales costs at 9%.

Those are just the numbers I like. By no means are they hard numbers that everyone should follow, just the way I like to run them.