rule of thumb

 A fair amount for operating expenses on a 150-unit apartment complex typically ranges from 35% to 50% of the property's gross operating income. A ratio in the 35% to 45% range is generally considered healthy and efficient. [1, 2, 3]

This percentage can vary significantly based on several key factors:

• Property Age and Condition: Older properties often have higher maintenance and capital expenditure needs, leading to a higher expense ratio.
• Location: Property taxes, insurance premiums, and labor costs are heavily influenced by the specific municipality and local market conditions.
• Amenities: Properties with more amenities (e.g., pool, gym, concierge services) generally have higher operating costs.
• Management Efficiency: Effective, proactive management can keep expenses on the lower end of the spectrum.
• Utility Pass-Backs: Whether tenants or the owner pay for utilities can significantly impact the final expense ratio. [1, 4, 5, 6, 7]

Typical Operating Expenses Breakdown

Operating expenses (OpEx) for an apartment building usually include the following categories:

• Property Taxes: Often the largest single expense item, making up a significant portion of operating costs.
• Salaries and Personnel: Costs for onsite managers, maintenance staff, and other employees.
• Repairs and Maintenance: Routine upkeep and minor repairs.
• Utilities: Costs for common area electricity, water, sewer, and trash removal (unless paid by tenants).
• Insurance: Premiums for general liability and property insurance.
• Management Fees: If a third-party company is hired, fees are typically 8-10% of gross income.
• Contract Services: Expenses for services like landscaping, janitorial work, and security.
• Marketing and Administrative Costs: Advertising vacancies and general office expenses. [11, 12, 13, 14, 15]

Note on Capital Expenses (CapEx): It is important to differentiate between operating expenses (day-to-day costs) and capital expenses (major replacements like roofing, HVAC systems, or appliances). While some use rules of thumb that blend these, professional analysis typically separates them to provide a clearer picture of Net Operating Income (NOI). [16, 17, 18, 19, 20]

AI responses may include mistakes.

[1] https://www.hellodata.ai/help-articles/good-operating-expense-ratio-multifamily

[2] https://rcncapital.com/blog/multifamily-operating-expenses-a-complete-guide

[3] https://www.bullpenre.com/insights/operating-expense-ratio

[4] https://www.mrisoftware.com/blog/managing-expense-growth-major-costs-multifamily-property-owners/

[5] https://www.facebook.com/groups/smallbusinessforsale/posts/3588499018071296/

[6] https://www.reddit.com/r/CommercialRealEstate/comments/1jvcxei/whats_a_reasonable_noi_or_expense_ratio_for_a/

[7] https://www.reddit.com/r/CommercialRealEstate/comments/qwqzvc/what_is_the_average_expense_ratio_when/

[8] https://loanbase.com/learn/properties/average-operating-expenses-for-apartments/

[9] https://bamcapital.com/what-are-operating-expenses-in-multifamily-real-estate/

[10] https://butterflymx.com/blog/multifamily-operating-expenses/

[11] https://butterflymx.com/blog/multifamily-operating-expenses/

[12] https://www.obieinsurance.com/blog/noi-net-operating-income

[13] https://www.tacticares.com/blog-feed/uncovering-multifamily-property-tax-comps

[14] https://www.afire.org/wp-content/uploads/2024/03/Summit_14_Winter2024_New-York-Life.pdf

[15] https://www.topkey.io/media/operating-expenses-opex

[16] https://www.reddit.com/r/CommercialRealEstate/comments/1jvcxei/whats_a_reasonable_noi_or_expense_ratio_for_a/

[17] https://www.cgprealestateconsulting.com/post/5-steps-to-calculate-rental-property-cash-flow

[18] https://www.alaan.com/blog/operating-expenses-in-real-estate

[19] https://www.investopedia.com/ask/answers/040915/what-are-different-types-operating-expenses.asp

[20] https://fnrpusa.com/blog/what-is-the-difference-between-capital-expenses-and-operating-expenses/

The green shaded area—a spacious 21.4-acre parcel of open #mcre1

The green shaded area—a spacious 21.4-acre parcel of open, undeveloped land near SE 40th Street and Interstate 470 in Topeka, KS, part of the Kansas City metro area in Shawnee County —represents a valuable opportunity in today's market. Comparable land prices in this suburban region provide strong context for its potential worth as a single-family home site.Recent listings and market data from sources like Land.com, LandSearch, Zillow, and local real estate analytics show significant variation depending on exact location, zoning, utilities access, and development potential. In broader Kansas City, MO, undeveloped or vacant land averages around $47,000 to $60,000 per acre across hundreds of listings, with overall averages pulled down by smaller urban lots and higher-end rural parcels. Jackson County specifically trends toward $43,000 per acre on average for available properties.Closer to this site's suburban-adjacent setting—near I-470 and established neighborhoods—prices for larger undeveloped acreage (10–40+ acres) often range from $30,000 to $90,000 per acre, reflecting proximity to highways, utilities, and residential growth. For example:

• Larger tracts (20–34 acres) in southern Jackson County or near Lee's Summit have listed in the $18,000–$40,000 per acre range for raw or semi-rural land, such as a 26-acre parcel at around $18,800 per acre or 20-acre opportunities at $39,950 per acre.
• In Lee's Summit specifically, rural/vacant land averages $73,000 per acre across smaller parcels, but drops for bigger undeveloped pieces, with some 10–20+ acre listings falling in the $50,000–$80,000 per acre ballpark when factoring in residential potential.
• Higher-end or commercially influenced parcels near interstates push toward $100,000+ per acre, but pure undeveloped residential-suitable land in this corridor stays more moderate.

For a 21.4-acre parcel like this one—open, grassy, bordered by subdivisions, and with excellent road access—the comparable value likely falls in the $40,000 to $70,000 per acre range, translating to a total estimated market value of roughly $856,000 to $1,498,000 (before any site-specific adjustments like surveys, zoning confirmation, or utility extensions). This positions it as competitively priced compared to smaller suburban lots (often $100,000+ per acre in built-up areas) while offering far more space and privacy.The site's advantages—generous size for a custom home with room for amenities, easy connectivity to I-470 for commuting, nearby infrastructure, and a serene, open feel—align well with current demand in growing suburban Jackson County. Larger parcels like this are relatively rare near urban edges, often commanding premiums for their flexibility in creating a private estate-style residence without rural isolation.Overall, in the 2025–2026 market, this green parcel stands out as a solid investment with strong comparable support. Its scale and location suggest it could appreciate further as the area continues to develop, making it an attractive option for building that ideal single-family home in a balanced, accessible spot.

This site offers an outstanding opportunity for building a single-family home #mcre1

 The green shaded area on this map represents a prime parcel of approximately 21.4 acres—a large, open, vegetated field bordered by established residential subdivisions and key roadways like SE 40th Street and Interstate 470. This site offers an outstanding opportunity for building a single-family home, combining generous space, strategic location, natural appeal, and straightforward development potential.

The parcel's expansive size stands out immediately. At more than 21 acres, it dwarfs typical suburban lots, providing ample room for a custom-designed residence with expansive lawns, landscaped gardens, outdoor living spaces such as a patio, pool, or fire pit, detached garage, workshop, or even a small barn. The roughly triangular shape borders mature neighborhoods on several sides, delivering a sense of privacy and seclusion while staying integrated with the surrounding community. The mostly flat, open grassy terrain simplifies site preparation—minimal tree removal or heavy grading is needed—lowering construction costs and environmental impact compared to sloped, rocky, or densely wooded land.
Location advantages are significant. Proximity to SE 40th Street and Interstate 470 ensures excellent connectivity for commuting, errands, and access to urban amenities. Nearby subdivisions indicate reliable existing infrastructure: utilities like water, sewer, electricity, and natural gas are likely close or easily extendable, avoiding the prohibitive expenses of remote rural development. The established residential character of the area signals a desirable, family-friendly neighborhood with strong resale value and community stability.
Aesthetically and practically, the open green expanse creates an idyllic setting for a dream home. Abundant natural light supports energy-efficient designs (optimal solar orientation), while the spacious field allows creative landscaping—native plants, tree buffers for added privacy, walking paths, or even a small water feature. Outdoor activities become an extension of daily life, with room for gardening, recreation, or simply enjoying open-sky views in a peaceful environment.
From a practical building perspective, the site's position amid developed areas suggests favorable zoning and permitting conditions for residential use. Local regulations in growing suburban-adjacent zones often support single-family homes on larger parcels, especially with access to paved roads. The open nature minimizes complications from wetlands, steep slopes, or dense vegetation, allowing flexible placement of the home to maximize views, breezes, and functionality—perhaps centering it for panoramic surroundings or offsetting for a private courtyard feel.
In essence, this 21.4-acre green parcel merges rarity (substantial undeveloped land so close to conveniences), accessibility, serene natural beauty, and ease of development into an exceptional single-family home site. With thoughtful site planning, it offers the chance to create a spacious, personalized residence that delivers privacy, room to grow, and lasting quality of life in a vibrant, connected area—an outstanding opportunity for anyone seeking more than a standard lot.