All Topics / Heads Up! / How to Determine Annual Cashflow out

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  • Profile photo of andrew30andrew30
    Participant
    @andrew30
    Join Date: 2003
    Post Count: 6
    January 1, 2004 - 9:13 am

    Hi all,

    My first post! A Happy New Year to all.
    Steve it is a great book – the challenge is to find property that fits in with “THE 11 second Rule”.

    Is there a general rule of thumb one can use to calculate a rough figure for Management Costs/Rates/Insurance when looking at various different properties.( In order to generate an accurate CashFlow out figure)

    Cheers,
    Andrew

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763
    January 1, 2004 - 9:19 am

    Hi Andrew,

    Thanks for your comments about the book and welcome to the community.

    Some general figures I allow for are:

    5% of purchase price for closing costs
    4 weeks vacancy p/annum
    8% mngt fees (unless otherwise known)
    3 to 4 weeks rent for maintenance

    Other costs vary too much to have general guidelines. You don’t want to make your financial analysis too general.

    Cheers,

    Steve McKnight

    **********
    Remember that success comes from doing things differently.
    **********

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

Viewing 2 posts - 1 through 2 (of 2 total)

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