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How Does Mashvisor Calculate the Expenses
How Does Mashvisor Calculate the Expenses

This article aims to help our users get a better understanding of the expenses included in the property report and how they are calculated.

Adam Williams avatar
Written by Adam Williams
Updated over a week ago

The two main types of expenses that we utilize in our investment property report and rental property calculator are the following:

  • One-time startup costs

  • Annual Recurring costs

One-time Startup Costs

These are the expenses and costs that will only occur once upon purchasing an investment or a rental property.

The main one-time startup costs that are included in our report include the following:

  • Inspections

  • Repairs

  • Furniture & Appliances

  • Closing Costs

The values for these expenses that will be set on default when you visit the property analytics page are fixed based on the nationwide averages for each of these expenses.

The default values for these expenses are as follows:

  • Inspections: $500

  • Repairs: $3500

  • Furniture & Appliances: $1000

  • Closing Costs: $3000

Note: These values do not represent that actual costs and expenses that will apply to your investment, but are the nationwide averages in the US! You can modify and adjust the values based on your investment accordingly.
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Annual Recurring Expenses
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These are the expenses that will occur on an regular basis when you own an investment or a rental property.

The main annual recurring expenses that are included in our report are the following:

  • Homeowners' Insurance

  • Utilities

  • Property Management

  • Property Maintenance

  • Property Taxes

  • HOA Fees

  • Rental Income Taxes

The values for these expenses vary depending on the source that we gather the data from. We receive some of the values for these expenses from our data source, while other expenses are set on a fixed default based on the nationwide average or other criteria.

The values for these expenses are broken down as follows:

  • Homeowners' insurance

The homeowners' insurance costs are set on a default value based on the nationwide average. This value is $83/month.

For multi-family units, we receive the data for the homeowners' insurance costs that will apply to the property from our data source.

  • Utilities

Utilities' costs are set on a default value based on the nationwide average. This value if $100/month.

For multi-family units, we receive the data for the utility costs that will apply to the property from our data source.

  • Property Management

The property management costs are set on a default value of 6% of the rental income.

For multi-family units, we receive the data for the utility costs that will apply to the property from our data source.

  • Property Maintenance

The property maintenance costs are set on a default value of 1% of the price of the property.

  • Property Taxes

The property taxes value is based on the accurate data that we receive from our data source.

  • HOA Fees

The HOA fees value is based on the accurate data that we receive from our data source.

  • Rental Income Tax

The rental income tax value is set on the default of 14% in accordance with the nationwide average.

Note: These values are not 100% accurate and are subject to change. Some of the nationwide averages can be significantly different from the actual value that will apply to your investment. You can adjust and modify the values accordingly and as you see fit based on the area that you're investing in.
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