Cash Flow & Capex

[Mario Morales]

When you look at a potential property, you crunch your numbers and your monthly capex (5% or so) is going to run you at $250 a month (roof, water heater, hvac etc,). Taking this into account with your operating expenses and debt service, what are you looking to cash flow per door in a multi-unit? 

[Gino Barbaro]

@Mario Morales

Hey Mario,

tough question to answer, because it depends upon debt you have and then market itself. Cash flow per door is higher in a market such as Cleveland when compared to other expensive markets such as Nashville or Charlotte.

In our market of Knoxville, we aim for around $200 per unit. We call it PPU(profit per unit). We are able to achieve a higher than average PPU because we are vertically integrated. We've actually been around $300 per unit the past few months.