You need to figure out the amount of the increase of the actual expenses when you purchase the property rather then ways in which they can be reduced.
The best way for you to approach the deferred maintenance aspect of the property is to determine the cost to put the property into good shape and then add that cost to the intended capital investment. If you estimate that deferred maintenance and repairs will cost $30,000, you then add that $30,000 to the cost of the investment. Once a property has been upgraded, the annual expense to maintain the property can more easily be estimated.
Hans Anderson
P.S. Information on how to evaluate deals
Kick Start Your U.S. Foreclosure Investing
Republished by Blog Post Promoter
Tags: Net Operating Income