Banks View On Maintenance Costs?
Does anyone know what the banks factor for maintenance costs on a rental income property? Or is this why they only count .75% of the rental income?
Also, is there a good rule of thumb to go by when setting aside money for maintenance?
Thanks
When I analyze a property for myself I include a $50 per month per unit figure. I find this is high on many properties but if the numbers look good with the high numbers, I'll be pleasantly surprised with the actual numbers.
Each bank looks at things a little differently so it's hard to esimate things. The best bet is to gather as many past tax returns on the property as you can.
myfrogger
Thanks for the info......I'll try that out to see how my numbers come out.
Don't forget the costs vary in each part of the country.