Replies

1. 
   alwaysoverbudget | Jan 06, 2009 07:56am | #1

   here in a couple months i could tell you. but when i look at a property i figure 10% vacancy,10% maintenance. at one time i thought those figures were high. but i could still hold with the vacancy rate, but i suspect 15% maintenance would be a better ballpark,and that is with no,none,not a dollar of outside labor hired.

   things have gotten so high,take average house worth 90k, renting for 750 a month.lets just throw out a new roof 6000.00 ,a new heat and air 4500, and 2000 worth of carpet over a 20 year period,thats 12,500 or 625.00 a year.those are some things that are absolutes over 20 years.[my carpet figure isn't even close]

   now take your taxes of 1000 a year,insurance of 700. 7300 per year net. and there you are with at least 9% in major maintenance with no upkeep at all and no vacancies.

   this whole rental thing isn't working as well as it used to! if i could sell out today and put my money into a interest account at 4% i'd eat better.  larry

   YOU ONLY NEED TWO TOOLS IN LIFE - WD-40 AND DUCT TAPE. IF IT DOESN'T
   MOVE AND SHOULD, USE THE WD-40. IF IT SHOULDN'T MOVE AND DOES, USE THE
   DUCT TAPE.

2. 
   DonK | Jan 06, 2009 01:32pm | #2

   It's a hard question to answer, really depends on the age and condition of the property.

   I've had some that didn't require 1% a year, and I've bought others needing work that cost more than the purchase price!

   I sort of agree that 10% is kind of expectable if the property is a few years old. 20% isn't out of the realm at all. What kind of tenants do you have? Are these necessary "repairs" or are they really upgrades? Who'se doing the work? You? Or is it being hired out?  

   Don K.

   EJG Homes     Renovations - New Construction - Rentals

    

    

    

3. 
   GregGibson | Jan 06, 2009 03:29pm | #3

   Many years, I've managed to spend little, if anything, on my rentals.

   Last year, after 20 years of delayed maintenance, I spent just about 100% of my income from one duplex. But it was asbestos siding, and I replaced it with Hardiplank, and put on a new roof, painted the windows, changed the roofline a little. No question that it was a good investment - but it was a little tough to plow that money into it.

   There were a lot of years, though, that I really didn't spend a penny on that property. I bought the duplex in 1985.

   Greg