Property Analysis: Are my numbers too conservative?

[Gurjot Grewal]

Hello BP,

From some podcasts, I have noticed investors putting a combined 5%  a month towards repairs/cap-ex. I have been using 10% for cap-ex and 10% for repair separately, 15% if it's an older house.  Am I way too high on these numbers?

Monthly Expenses

• Mortgage
• Property Tax
• Insurance; check if you need additional flood, earthquake insurance
• Vacancy 3-10%
• Repairs 10-15%
• CAPex 10-15%
• Prop Manager 7-12%
• Utilities: Depends
• HOA fees

Typically I have been adding the mortgage, tax, insurance, 35%(the combined total of expenses) to quickly assess if something is worth looking further into, or using a property calculator.