From an appraisal form point of view, the taxes and hazard insurance are included in the operating expenses which would bump up your overall percentage some. Only the actual mortgage payments (including interest) and income taxes are not. There's also a sinking fund factor for short-lived items such as appliances, roofs, etc. -- is that your CapEx estimate? Your repair percentage looks a bit low to me. Where are you figuring in the costs to get-it-ready-to-rent-again? Does your water percentage include sewer and trash fees?
Do you have a savings account with some back up $? In my life, everything hits the fan at the same time. I like to have some mortgage payment money and some major repairs money on hand for those moments. That's where I put my vacancy factor, repair percentage and sinking fund factor monies to be ready for those the-sky-is-falling moments.
However you look at it, just make sure that you are in the black rather than the red! As long as you have everything covered, it doesn't matter where you list it on your balance sheet. Good luck!
www.wjkbusinessbuzz.com
Thanks. I'm just speaking from the point of this thread to make sure the numbers work. I'm not concerned with appraisal, moreso 'is this in the black or red?' - it's already rented, although I'll be raising rents roughly 10% and getting under lease. I've got a list of all repairs needed from my home inspection and I'm allotting for the larger funds and repairs in CapEx and Repairs - the repairs are honestly high for what i'm allotting because i'm planning on spending a few thousand out of pocket up front to take care of a lot of repairs that were noted in the home inspection.
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