What % capex and repairs do I put for a 4 plex?

[Anastasia Frank-Bruggemann]

Hi everyone, 

I'm running the numbers on a 4 plex I'm considering buying and I wanted to know if the capex on the rental calculator is calculating a % of each unit - so if it shows 150 for repairs that's repairs for that unit or for the entire house? 

Thanks so much in advance for your insight as I get my head around this!

Warmly, 
Anastasia 

[Drew Bonner]

@Anastasia Frank-Bruggemann no problem at all! I think with repairs you can go a little bit lower, say 8% or so. I think the biggest expenses with repairs comes with turning over a unit after the tenant has moved out because a lot of tenants neglect minor repairs throughout their tenancy that the landlord is stuck with putting $300-400 into a unit at the end of their lease. I think the bottom line is, when you are analyzing potential properties to buy, you should just plug in pretty conservative numbers like 10% Capex and 8% maintenance because at the end of the day, you really aren't going to know exactly what you are cash flowing until you have owned the property for a couple years and have familarized yourself with the maintenance of your property. Feel free to reach out to me at any time Anastasia!