Projected earnings - Posted by Kathy (MI)

Posted by Dave T on February 17, 2002 at 23:36:29:

My rule of thumb is 50%, though the lender will probably want to see an itemized schedule of projected expenses.

Projected earnings - Posted by Kathy (MI)

Posted by Kathy (MI) on February 17, 2002 at 13:27:06:

What percentage of gross receipts is generally used to calculate projected expenses for a property, such as taxes, vacancies, and repairs?

I am applying for a mortgage and the application asks for a yearly projection of earnings on the property (18 unit apt) I am buying.


Re: Projected earnings - Posted by GL(ON)

Posted by GL(ON) on February 18, 2002 at 09:39:00:

When evaluating a property I NEVER estimate or take the seller’s word for the expenses.

You can find out exactly what they are by calling up “headquarters” and getting the facts.

First you need the street address and the legal address, then you call up the tax office the electric company the gas company etc. and find out. If they won’t give you the info then you have to ask the seller to see the bills.

You could make an offer conditional on verifying the expenses, and go by the figures the seller gives you.

I know of one guy who always buys with owner financing, then if he catches a lie or a hidden expense later he deducts it from the mortgage.