Rental Property Calculator

[Frank Wei]

Hi BP Community,

I was curious how people were projecting their Repairs/Vacancy/CapEx in their deal analysis before they make an offer to see if the deal is worth considering deeper.

I understand this has a big variation depending on location, age/condition of property, type of neighborhood, etc... and there are ranges given in the help section but I have found that the range is so huge, it can make a deal look terrible or fantastic.

I also understand that potentially a more accurate representation of this might not come until after the inspection report but from my rookie lens of looking at things, this level of detail only comes after a submission of an offer.

Maybe some factors that helps to narrow down the feedback. I'm looking primarily at properties that are simple value-add or near turnkey condition, B/C class neighborhoods. Some markets I've looked at the deals are

Columbus / Memphis / OKC / Pittsburgh / Phoenix with a purchase price of 150-350k.

[Drew Sygit]

@Frank Wei unless something major needs to be replaced in the next 5 years, you're almost wasting your time doing CapEx.

If it needs to be done in the next 5 years, then set the money aside now. 

We CONSTANTLY see investors replacing TOO MANY things when they buy, over-improving  and not MAINTAINING TO THE NEIGHBORHOOD!
- Investors should repair, repair & repair most items BEFORE replacing them. Items have a lifetime and you want to get as much life out of everything as possible - otherwise, how will you make money when you're constantly replacing stuff?
--- EXTEND: Roofs, siding, doors & windows, concrete, furnace, hot water heater, flooring, etc. Stuff that really doesn't impact a tenant's peaceful enjoyment of the property.

For Maintenance & Vacancy:
Class A 5-10% (each)
Class B - 15 - 20% (each)
Class C - 20%+ (each)