Expense Proportions
What are good ranges to consider for expenses as a percentage of income? I know each locale has their own peculiarities but what are good rules of thumb?
Also, how do you factor in capital reserves into your pro forma budget for a property acquisition?
Also, how do you factor in capital reserves into your pro forma budget for a property acquisition?
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The Institute for Real Estate Management publishes every year a very detailed answer to this question.
http://www.irem.org/sec1ins.cfm?sec=iremfirst&con=ie.cfm&par=
Its not cheap but back when I did apartment buildings I found it bery helpful.