Maintenance Estimates
When we analyze deals, we often will estimate a certain amount of money to put aside for maintenance from the monthly income on the property.
Why do we do this?
It has been our experience that houses tend to have maintenance needs… things need to be fixed, repaired and updated over time.
For ease of calculating, we usually we base our maintenance expenses on a percentage of income for the property.
It is important to realize that on any given house our maintenance estimate could be very low and, although much less likely, very high. When you actually go out and inspect a house, use your own knowledge and judgment and talk with the real estate professional we refer you to for more information on how you can get professional advice on what maintenance might be on a particular house.