Figuring Taxes/Ins. For 100+ Units
Is there a percentage or a range constant that I can safely use when estimating taxes and insurance for 100+ units? For DSC I can plug in 1.2% - 1.5%. Can I use something like this for T+I? I have existing figures but those will increase and be based on purchase price/new value. I could increase expense factor or DSC but just looking for that range between safe and overkill. Thanks Larry
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When analyzing property, I always prefer to use actual numbers and do an income/expense analysis. You can get property tax information from your county treasurer and insurance rates from your insurance agent.
For example my insurance agent told me that landlord-type insurance in my area for 5-25 units is $0.421 per $100 of value. I use this as a guide and it is accurate enough for my initial numbers. Obviously you would want to get a quote on any property you are considering closing on but this can be done after you have an accepted offer.