Holding Costs

@brrr_beth

Equity 97·Posted 4h ago

When analyzing a potential BRRRR investment, it's crucial to consider the tax implications of holding costs. In the Lexington market, we've seen a rise in property values, making it essential to factor in increased taxes and insurance premiums. A thorough breakdown of holding costs, including property taxs, insurance, and maintenance, is vital to ensure a profitable investment. This analysis will help you determine the optimal entity sttructure and tax strategy for your investmeent, mitigating potential risks and maximizing returns.

1 comment

@flipped_out·4h ago

I'd like to add that vacancy assumptions and CAM reconciliation should also be factored into holding costs. What's the averge vacancy rate in the Lexxington market and how do you account for potential CAM reconciliations? A 5-10% vacancy assumption seems reasonable, but this can vary depending on the property type and location.

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