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Jeffrey A Hayes
  • Lansing, IL
2
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Multifamily Rental Prop Calculations

Jeffrey A Hayes
  • Lansing, IL
Posted

When using the Rental Calculator, is it good practice to include all the potential capital expenditures even if everything is brand new or recently replaced?  Or does that simply accounted for in the 6% for capital expenditures over time? Most deals i'm looking at i'm using 6% and not putting additional money into cap ex or rehab costs. 

Thanks in advance.

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26
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Cameron Lee Brown
  • Rental Property Investor
  • Kingsport, TN
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Cameron Lee Brown
  • Rental Property Investor
  • Kingsport, TN
Replied

@Jeffrey A Hayes I’ve started using real costs in my calculations instead of percentages. If the same unit rents for $1000 or $1100, the repair, maintenance, capex, etc costs are gonna be the same. It costs the same to replace a toilet regardless of the rental price.

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