All Forum Posts by: Vincent Parello

@John Leavelle I always thought of cap ex being included with your maintenance, So you are saying I should have like 10% for cap ex and 10 for maintenance?

Hey everyone,

I had a question about analyzing rentals, I see people add the expense of Maintenance, Property manager, and vacancy along with others. And I have learned that people use a percentage of the rent to figure out the following.

Maintenance 10%

Property manager 8-10 %

Vacancy 5 %

I know everyone may have a different way or a different percentage they use.

I wanted to get every ones opinion on this. I have been analyzing my deals with the PIMIA , utilities etc. and I do 23% for the long term expenses. Maintenance 10% PM 8% and Vacancy 5%. 

My question is, Is there any good reasons to justify lowering my percentages, For example. If I have a multi-unit can I lower the vacancy ? or if the home was built pre 2000 could I lower the Maintenance %?

I want to thank everyone for their input, I feel like I know a lot more now and I can look at well water homes with more confidence.

Anyone who is in the Chicago land area on this post please add me as a friend and let's connect. I have too many outstanding friend requests so I can no longer add more people until I upgrade.

with the only bonus anyone has mentioned is no water bill I think I am going to stay away from well water homes.

@Nicholas W. You basically answered all my questions with one post so I really appreciate that. I am working with an investor right now and one of our main concerns as far as criteria is if the property doesn't sell it will at least be good to rental. With this being his first deal and your input I think we are going to stay away from Well.

@Nathan Waters  I knew there was some serious costs with well properties. Did you rent or Flip the property in Joliet? And do you still invest in the area?

@Adam Juodis I found a property I am thinking could be good for a rental, right off 55 and route 30,

I know this is in your neck of the woods, If you got a few minutes id like to ask your opinion on this home. 

I am guessing that would run in the tens of thousands of dollars. And I am guessing the savings on well water if any doesn't  really cover the expense of a well water pump.

you find a lot of well water homes in the unincorporated areas,  I can not say for the city of Chicago but the suburbs there all over.

Hey everyone,

I wanted to hear everyone's opinion on buying rentals on well water. Pros and cons?

I am in the Chicago land area so hopefully, I can get some input from local investors.

No one comes to mind, But I would be happy help. I sent you a request Dhru das