How do you analyze a potential rental property? (My spreadsheet included!)

real-estateinvestinglandlording

Dimitar_BG

Joined:
19.12.2023
Posts: 19

Topic Starter

07.01.2025 18:37

I've been looking at a few duplexes in the area and have started building my own analysis spreadsheet to track cash flow and cap rates. I'm currently accounting for taxes, insurance, and a 10% vacancy buffer, but I feel like I might be missing some hidden maintenance costs. Does anyone have a specific formula or rule of thumb they use to estimate long-term capital expenditures? I've attached a copy of my current sheet below and would really appreciate any feedback on what I should add or remove before I make an offer.

15 replies in this topic

Krasen_K

Joined:
03.11.2021
Posts: 2125

17.01.2025 01:15

Thanks for sharing! I usually add a 5-8% line item specifically for CapEx to cover big ticket items like roofs and HVAC over time.

vuprositel

Joined:
27.06.2024
Posts: 1333

20.02.2025 01:56

In reply to a previous post

I agree with the previous comment. Don't forget to factor in property management fees even if you plan to self-manage initially, just in case your plans change.

Leon_M

Joined:
22.04.2020
Posts: 2104

28.02.2025 07:33

In reply to a previous post

Looks like a solid start! Have you accounted for potential lawn care or snow removal costs? Those can eat into your margins in some climates.

Znaesht

Joined:
08.05.2023
Posts: 975

16.04.2025 13:19

The 1% rule is a good sanity check, but for a duplex, it can be tricky. I'd definitely look at the age of the mechanicals before putting in an offer.

Maistor_Ivan

Joined:
09.08.2023
Posts: 969

17.04.2025 15:56

In reply to a previous post

Is the spreadsheet link broken? I can't seem to open it on my phone.

vesko_55

Joined:
21.03.2021
Posts: 2020

05.05.2025 01:18

Don't forget to account for periodic turnover costs like painting and deep cleaning between tenants. It’s more expensive than people think.

Yana_P

Joined:
19.02.2025
Posts: 326

12.05.2025 21:20

In reply to a previous post

I personally use a $150/month reserve for maintenance on every unit. It’s kept me safe during major repairs so far.

ObiknovenChovek

Joined:
27.08.2020
Posts: 1874

29.05.2025 06:18

In reply to a previous post

You should definitely add a row for debt service coverage ratio (DSCR). Banks will look at that closely before approving your financing.

Maks_D

Joined:
19.11.2023
Posts: 1156

15.08.2025 18:16

Honestly, I just keep it simple with a 50% rule: assume 50% of your gross income goes to expenses, and the rest is for debt service and profit.

ekspert_forum

Joined:
26.10.2024
Posts: 826

24.08.2025 19:45

In reply to a previous post

That's a bit too conservative for some markets, but it's a great baseline for beginners. Good advice.

NqkoiNesh

Joined:
30.03.2021
Posts: 1790

08.09.2025 02:13

In reply to a previous post

Are you accounting for the increase in property taxes after the sale? Sometimes the assessment resets and you get hit with a huge bill the following year.

chicho_savet

Joined:
07.05.2023
Posts: 1454

18.09.2025 16:19

Great post. I’ve been struggling with how to value a duplex versus a single-family home. This spreadsheet might actually help.

Oliviya_T

Joined:
07.01.2025
Posts: 899

12.10.2025 08:45

In reply to a previous post

Make sure you include a 'miscellaneous' category for those odd repairs that always pop up in the first three months of ownership.

chicho_savet

Joined:
17.06.2022
Posts: 1375

17.10.2025 21:37

I'd love to see a version of this that accounts for appreciation projections, though I know cash flow is king.

Yulia_M

Joined:
23.05.2020
Posts: 1459

13.11.2025 04:03

In reply to a previous post

Nice work on the sheet. It’s clean and easy to follow. I think adding a section for 'estimated repair costs at closing' would be a big improvement.

How do you analyze a potential rental property? (My spreadsheet included!)

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