Updated almost 7 years ago on . Most recent reply
Capital expenditures for 19 units
This property I am looking at is early 1900's. The pro forma shows 10% for maintenance and repairs. Would you include capital expenditures in that? Or add an additional 5-10%?
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Greg Dickerson
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Greg Dickerson#2 Land & New Construction Contributor
#2 Land & New Construction Contributor
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CAPex is not part of the operating costs and not used to calculate NOI. It is a separate line item on the overall proforma.
It’s hard to say what to budget for a building like that without knowing everything about it including income, current condition, type of construction, existing systems etc. You should defer to a management company and contractors in the area that handle similar properties.