Updated almost 5 years ago on . Most recent reply
Oregon Property Expense Eatimates for Analysis
Morning All!
Wondering if any real estate veterans can help me hone in on expense estimate number for deal analysis. I know I will want to be more detailed than this, especially (I would imagine) on the capex side.
I’m just looking for starting numbers I should be using in my analysis. I’ve read that I should use the following assumptions:
5% vacancy
10% Prop Mgmt
10% Capex
10% Maintenance
Every deal I’ve looked at comes up with negative cash flow using these assumptions. So am I using the correct assumptions and just not finding deals? Or are my assumptions too high for this area. I am looking in the Willamette Valley (Salem to Eugene) as well as is in Central Oregon (Redmond-Bend-Sisters). Also in Kelso, WA.
Primary interest is 2-4 plex.
Thank you for any insight!