Just thought id throw a few questions out there,
just been looking at a few spreadsheets,
when i calc cashflowness of a property
I include the following
- PM management fee
- PM leasing fee
- Maintenance
- rates
- water rates
- Insurance
- 3 week vacancy
a few props that were supposed to be positive for the first year are neutral or negative,
eg, vacancy was a week longer, a few extra bits of maintenance along the way, a few bits of maintenance during open for inspecion period, eg broken windows, another clean, rates being about 10% higher then quoted, water supply charges going up since last meter check, tenant did a runner and the excess would pretty much equal the claim, got quoted rates at 1100pa by council, but turns out its 2100 pa because that particular area is higher etc. etc.
so how do you guys deal with this psychologically,
these props were supposed to be neutral at worst, and now they have cost me a fair bit in the first year,
do you guys simply say "meh, 2nd year, wont cost as much as 1st year, all good"
or do you simply say "obviously my estimates were wrong"
or do you panic and put them all on the market,
would be interested to see how people deal with this
just been looking at a few spreadsheets,
when i calc cashflowness of a property
I include the following
- PM management fee
- PM leasing fee
- Maintenance
- rates
- water rates
- Insurance
- 3 week vacancy
a few props that were supposed to be positive for the first year are neutral or negative,
eg, vacancy was a week longer, a few extra bits of maintenance along the way, a few bits of maintenance during open for inspecion period, eg broken windows, another clean, rates being about 10% higher then quoted, water supply charges going up since last meter check, tenant did a runner and the excess would pretty much equal the claim, got quoted rates at 1100pa by council, but turns out its 2100 pa because that particular area is higher etc. etc.
so how do you guys deal with this psychologically,
these props were supposed to be neutral at worst, and now they have cost me a fair bit in the first year,
do you guys simply say "meh, 2nd year, wont cost as much as 1st year, all good"
or do you simply say "obviously my estimates were wrong"
or do you panic and put them all on the market,
would be interested to see how people deal with this