Accounting for all expenses

[Steven Holt]

Hi, Pretty new to BP, I want to share some ideas about due diligence and hear feed back from the community.

Here I will show a list of all expenses and rates that I am currently considering for Single Family Homes,

If I have missed anything at all or if my %'s seem off. Please do not hesitate to share your input as I am hoping to make this list comprehensive and rock solid.

Here is what I have so far,

Closing costs

-Lawyer fee: 100$ -land transfer tax, title insurance: 100$ Estoppel certification, appraisal: 300$ Home inspection: 500$

Expenses

Mortgage, property tax, insurance, Vacancy rate, HOA fees, property management fees: 6-12% ?? repairs/maintenance, water, electrical, gas, lawn care, snow removal, sewer, garbage ?? how do I find this out?

Cap EX

appliances: 8.33$/mo Roof: 16.67$/mo Water heater: 5$/mo Driveway/Parking: 8.33$/mo flooring: 27.75$/mo structure/framing: 16.67$/mo plumbing: 8.33$/mo Components (garage doors/ect): 8.33$/mo paint: 12.5$/mo Cabinets/counters: 12.5$/mo landscaping: 8.33$/mo Total : $153.57/ Mo

I derived the Cap ex numbers from a BP post.

I am hoping to learn as much as possible from your valuable input, as well as to start a discussion that everyone can benefit from.

Thanks, And Happy Investing!

PS: I will note that I lack any numbers on what It costs to sell a house// RE agent fees, if I should choose to do so.

[Angel G.]

Hi Steven,

Great job on the details above! It shows that you're putting in the work to setup a solid underwriting process. One thing I will add is to ensure you determine what your criteria is for the type of Single Family Home you're investing in. Most of the time, in my experiences, the tenant will cover all utilities associated with that property to include lawn care. When approaching my analysis with that criteria in mind, I use Mortgage, Property Tax, Insurance, Vacancy, Maintenance, CAPEX, HOA Fees (if applicable) and Property management which averages between 6-10%.

Depending on the age of the home determines how much % I save for maintenance and CAPEX. With older homes, I'm going more conservative and saving more for both of those areas.

I do like how you broke out the CAPEX - thanks for sharing that!