hold 3-5 years before upgrading—do I still consider CapEx?

[David Lund]

Should I still consider CapEx for a SFH (had it at about $150/month) for monthly cash flow if I only plan to hold a property for 3-5 years? Long term vision is to consolidate properties into a large multi family.

Any and all advice is appreciated! 

[Chris Seveney]

@David Lund

Yes. You also should count property management fees as well even if you don’t use one. It gives you accurate pricing

[Chris Davidson]

@David Lund yes count for it but also know in your strategy you will likely have excess funds if everything goes as planned. If everything doesn't then you have some funds to cover it.

[Christen G.]

Yes for sure - can't hurt in this current climate and it'll be there when you need it in 3-5 years.

[Nathan Gesner]

Quote from @David Lund:

Yes!

Include capex and PM into your calculations. If you need it, you have it. If you don't need it, then you can use the extra money towards the next investment.

[David Lund]

Quote from @Chris Davidson:

@David Lund yes count for it but also know in your strategy you will likely have excess funds if everything goes as planned. If everything doesn't then you have some funds to cover it.

Great advice! Thanks 

[David Lund]

Quote from @Nathan Gesner:

Quote from @David Lund:

Yes!

Include capex and PM into your calculations. If you need it, you have it. If you don't need it, then you can use the extra money towards the next investment.

 Great! Thank you 

[Henry Lazerow]

Yes, but maybe do less $100 a month, etc. There is still is stuff like clogged toilets, random leaks, etc. that happen even outside of long term cap/ex items.

[Drew Sygit]

how will you know when to sell?