What’s also true is that you can deduct expenses and even depreciation on this same % and subtract the first $1000 before calculating the UBIT.  

BiggerPockets also has a calculator to analyze deals, and I highly recommend you start this as soon as possible, even if you are not ready to buy.

This is just a general spreadsheet for calculating capex, regular expenses, vacancy, etc.

I sometimes use Loopnet.com for quick examples of multifamily properties in different cities and the cap rate they produce, including the calculation itself.  

Calculating the Deduction: Choose between the simplified method (a flat rate per square foot) or the regular method (actual expenses).How do you manage your home office deductions?

View report*This link comes directly from our calculators, based on information input by the member who posted.

., through a 1031 exchange), you may have to recapture the depreciation upon sale.4.Switching from long-term to short-term rental (STR) applies for the full calendar year when calculating depreciation benefits.5.Using co-hosts may help, but be cautious of the 100-hour requirement for material participation.

You can also ask the tenant to sign an estoppel, which essentially has them verify the rent they are paying.As for expenses, the main areas where they can go awry include property taxes, which you can determine on your own; the mortgage, which you can also calculate; insurance, for which you’ll have a quote beforehand; and utilities, for which you can obtain the bills from the landlord.

Upon move out and receiving a portion of the security deposit, we were charged an over $400 cleaning fee in addition to some normal wear and tear items because they exceeded the apartments self calculated normal wear and tear allowance.

Calculated risk worked for us.