Biggerpockets calculator for 5+ units (commercial)
Hello all,
Couple questions when analyzing 5+ units deal...
- Capex: no matter how many deal analysis I perform with the BP rental calculator for 5-30 units, I usually end up far from the asking price. I noticed that the Capex reserve were included in the operating expenses while i read many times that it should not be included in the NOI, and therefore should not be counted toward the property price. Any insight on this?
- future assumptions: What do you guys believe is best for Annual income growth, PV growth and Expense growth ?
By plugging in a 2% for all them like explained in webinar for small multifamily building, it should not work since a 2% annual income and 2% annual expenses growths would make a 0% NOI differencial (therefore no added value).
Do you guys ultimately think the BP calculator is not the best in order to calculate a commercial multifamily deal?
Thanks for your insights,
Charles.