Calculating repairs when purchasing

4 Replies

I'm a newbie about to close on my first 5 properties in Rochester, NY and I'm looking now at properties which need work, my question is how do the experienced investors of this blog calculate repairs into the projected ROI, in that a new roof wont need to be replaced for 20-30 years ect.. Thanks Josh

Originally posted by @Clayton P. :

Are you talking about repairs you need now or about budgeting for capital expenses?

I'm talking about repairs you need now, in other words if a house I am looking at needs a new roof do you add 10 k to the purchase price when calculating projected ROI, or since now I won't need one for 20-30 years don't add the 10k into the purchase price?