All Forum Posts by: Joe Edwards-Hoff

I've been reading the other threads, but just to confirm, that is 50% in addition to taxes and insurance, or just principle and interest? I did read that it includes vacancy. So far, I have been estimating by using a vacancy percentage of 5% (college town, so it is lower) and then itemizing other expenses. That's why I was hoping to find a general rule of thumb.

Seems that 50% works well with multiunits. Maybe closer to 40% with single family homes that pull in higher rents. Around here a 4 bed 2 bath can pull in 1400 a month on a 1 year lease...

Hey all,

I am currently just researching and practicing right now. One thing I have been doing is assessing the cash-on-cash value of certain properties in my town. I factor in vacancy rates and some other stuff, but is there a general rule of thumb that I could put in that would factor maintenance, taxes etc. Like a percentage. I think I heard 15%, but I'm not sure if that is right or not. The 15% would cover all expenses excluding the loan price. Taxes, insurance, ,maintenance, etc.

Any suggestions? I've been plugging properties into the Rich Dad Evaluating program and I figure for someone with no experience, a % would be easier than individually inputting accounting, business, taxes, utilities, etc, since I don't know exact figures for those yet.