Off Market MFs

[Chris Nare]

Hi, I am a newbie, and we are working on finding our first deal. I have found a seller with a group of MFs ( Quads and Tris) that is off-market in Dayton, OH, and I am working on doing our deal analysis. 

What percentage of the rent do you suggest I use for maintenance, Capex, and vacancy? Thank you in advance for your help!

[Greg Kasmer]

Chris - I think Sam meant 15-20% in total for all three. To be more specific, what I general underwrite is 5% for vacancy, 5-7% for repairs/maintenance, and 5-7% for CapEx/Reserves. In larger multifamily you'll likely see those estimates expressed on a "per unit" basis in dollars as opposed to a percentage. Hope this helps!