CapEx for multi-unit buildings

[Michinori Kaneko]

Hi All,

I've invested in several SFHs but i've been blessed with an opportunity to potentially buy a 60-unit residential building. Since this is the first time i'm investing in a building, i'm a little clueless as to what sort of CapEx expenses i should anticipate, unlike with the SFH i'm fairly familiar. In the SFH world, many investor suggests to stash away 1 month of rent as CapEx savings, is there something similar in the multi-family side?

Also how do i estimate how much i should anticipate on average for a turnover? is it comparable to SFH or much less? Thank you in advance, and sorry for a very broad question. I was just unsure where to start.

[Hai Loc]

The easiest way is to pay for an engineering firm to do the inspection which includes replacement cost estimates. You should be able to figure out the capex forecast with that report. It will be costly but for a 60 unit well worth it..

If you want to bypass that which is not recommended. Get bids on the cost to replace everything and divide the replacement cost by life expectancy      $10,000 to replace / 5 years left..  $2000 a year / 12 months = $83 a month for that particular line item..