hold 3-5 years before upgrading—do I still consider CapEx?
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!
#2 All Forums Contributor
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@David Lund
Yes. You also should count property management fees as well even if you don’t use one. It gives you accurate pricing
#4 Creative Real Estate Financing Contributor
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#4 Creative Real Estate Financing Contributor
- Real Estate Agent
- Boise, ID
@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.
Yes for sure - can't hurt in this current climate and it'll be there when you need it in 3-5 years.
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.
Quote from @Chris Davidson:Great advice! Thanks
@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.
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
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.
#2 Managing Your Property Contributor
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#2 Managing Your Property Contributor
- Property Manager
- Birmingham, MI
how will you know when to sell?
