if a retail building genberates $125K in gross rents per year, what percentage of that should be expneses

In Buying Property - Asked by Michael M. - Apr 17, 2013
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Answer(s)

Glen W.
Lender/Mortgage Broker
Atlanta, GA

it really depends on the property (are all units individually metered?) are the rents NNN? What expenses is the owner responsible for verse the tenant? Is there deferred maintenance (a large roof or parking lot repair)? Who pays taxes and insurance, etc... ? Unfortunately there is no way to speculate on the expenses without seeing the exact language in the leases and the details on the property. Good luck.

Apr 18, 2013
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Jim M.
Broker/Agent
Charlotte, NC

Expenses could exceed gross rental income, ie 120%, or could be 50% of gross rental income. No way to tell without more information ...............

Apr 18, 2013
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Robert H.
Broker/Agent
Hattiesburg, MS

go to the library or an appraisal company and ask for the Marshall & Swift which has detailed numbers on all expenses. Also ask a commercial agent who might ave listings near the subject property to help you.

Apr 20, 2013
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Jeff R.
Lender/Mortgage Broker
Birmingham, MI

Assuming the property has occupancy of over 80%, I'd say the average expenses should be appr 25 - 35% of gross sales.
Jeff

Jun 3, 2013
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