Results 1 to 9 of 9
  1. #1

    Goofy How do I know how much rent I can afford?

    How do I know how much rent I can afford? Thanks for helping.

  2. #2
    Join Date
    Feb 2007
    Location
    Washington state
    Posts
    1,359

    Default

    Great question. Fill out all of your income projections and be conservative as it says. Next fill out all of the operating expenses but skip rent. Now look at the bottom line for each year. Let's say in your first year of the shop there is $28,000 leftover. Generally and roughly speaking at this point know that out of $28,000 you have to pay rent and what is left over is your personal income if you did not already state and included a wage for yourself as salaries in the included operating expenses. Make sense?

  3. #3
    Join Date
    Jun 2017
    Posts
    85

    Default

    That's what I am doing, I absolutely love (and understand!!!) this spreadsheet. It gave me my range of rents, and all I had to do was change my service fees by raising them $1 from my estimate and it covered the cost!! I would have never ever in lifetimes had been able to do this and I did it in 5 minutes. Paws up!

  4. #4

    Default

    Awesome I see that conservatively now I can afford $600 to $900 and get the pay from the business I want, but $1,200 is more likely around here, so that's why I have lots of savings for the first year so that extra rent is covered in a sense, as I won't take all the pay to compensate for spending $1,200. Thank you for this tool, I got it. I would never been able to figure this so easily.

  5. #5
    Join Date
    Jul 2017
    Posts
    67

    Default

    Quote Originally Posted by Stephen View Post
    Great question. Fill out all of your income projections and be conservative as it says. Next fill out all of the operating expenses but skip rent. Now look at the bottom line for each year. Let's say in your first year of the shop there is $28,000 leftover. Generally and roughly speaking at this point know that out of $28,000 you have to pay rent and what is left over is your personal income if you did not already state and included a wage for yourself as salaries in the included operating expenses. Make sense?
    THIS is exactly the advice we followed too.

  6. #6
    Join Date
    Apr 2012
    Location
    Kansas
    Posts
    589

    Default

    Quote Originally Posted by Stephen View Post
    Great question. Fill out all of your income projections and be conservative as it says. Next fill out all of the operating expenses but skip rent. Now look at the bottom line for each year. Let's say in your first year of the shop there is $28,000 leftover. Generally and roughly speaking at this point know that out of $28,000 you have to pay rent and what is left over is your personal income if you did not already state and included a wage for yourself as salaries in the included operating expenses. Make sense?
    That's how I did it instead of rent though the rent figure was what I could afford for my maximum mobile vehicle loan, worked out great.

  7. #7
    Join Date
    Aug 2017
    Posts
    104

    Default

    I agree. Here is what we did. We projected income low and expenses higher than expected just to be conservative, we did not put rent amount in. Once you are at that point, look how much is left over each month in the Month 1 to Month 12 columns. If you didn't put in your wages that left over is yours, and rent. So put in rent now and see what is left over. You have to live off that, if not enough, can you lower rent? Realize it is usually very tight for the first 6 months or longer if startup. We are showing a modest loss the first 4 months, but maybe we will grow faster but not counting on it. We use our savings those months to cover any loss. We are delaying our opening to February next year to give us time to fix the place up, and be ready for Spring business as it warms quick here.

  8. #8

    Default

    I think by doing a plan for a shop it has me thinking about going mobile. I am pretty good with basic car for vehicles and my brother is a mechanic. The other brother is an electrician so he was going to help with the shop. Either way nice family help. I can pay back with dog care. I am going to try a mobile style plan now. It's a big decision. Rents are very expensive here, more than twice a vehicle payment for a new van. But looking at used anyway, something 3 to 5 years old. Brother can help, he knows RV maintenance. Its a family affair.

  9. #9
    Join Date
    Jul 2017
    Posts
    67

    Default

    Have you made a decision Anything?

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •