More sound advice:
If you are considering buying rental properties, you should already know how to analyze an investment by penciling out your real estate deal. Within that analysis, one of the critical tasks is accurately estimating how much your operating expenses -- property taxes, HOA fees, lawn care, property management fees, insurance, maintenance expenses and all costs other than the mortgage -- will be on the property.
Properly estimating your operating expenses will give you confidence that your analysis is on the mark. So to help you better estimate those amounts, lets talk about some percentages in a broad range and then specific items and costs.
Categories covered in the article:
Operating Expenses Percentage
Maintenance and Miscellaneous
You can contact your insurance agent, run over the property specifics and get an exact estimate of the cost for the coverage you need. Don't forget to consider earthquake, flood, umbrella liability, HO-6 interior condominium unit policies or any other special insurance you may want or need.
PropertyPak's suggestion: If your property is 1-to-4 units, tenant occupied, and in Arizona, California, Nevada, Oregon, Utah, or Washington, check to see whether you should submit a Request for Quotation via PropertyPak's online submission method: https://propertypak.com/. Also, check back with us to see if we've added additional states and property types, etc. Thank you.
Read the whole article: Want to Buy Rental Property? Consider The Expenses | AOL Real Estate.