Tag Archive for ‘maintenance’
Show Me the Money – Six Common Cash Flow Misrepresentations
We know we should perform due diligence before making any investment. But often people don’t know what they don’t know. This is especially true when calculating cash flow. Here are six key areas to understand and clarify before considering any real estate investment purchase.
Evaluating Maintenance Costs for Investment Property
I was asked an interesting question the other day by an investor who was evaluating a single family home for investment purposes. He was planning on to hold the property for approximately 20 years. He’d evaluated the property using a 5% annual maintenance reserve and was wondering if he should raise his maintenance reserves to 10% to cover all the maintenance issues he felt he was going to face during a longer term hold. In other words, does the maintenance rate need to increase, the longer one holds the property?
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