Updated almost 7 years ago on . Most recent reply
Vacancy, Repairs, and Capex percentages
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- Real Estate Broker
- 3412 S. Harlem Avenue Riverside, IL 60546
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@Joshua Paul you will need to speak to some local investors, realtors, property managers or lenders who are knowledgeable about your market. It is important that a first time investor considers these numbers at all, so kudos to you for using them. The issue for a lot of first time investors though is that they beef up their numbers so much that they walk away from great deals so they can "be conservative". I worked with an out of state investor two years ago who walked away from a screaming deal in Berwyn, IL because they wanted to use 10% vacancy, 10% maintenance and 10% CapEx. The numbers would never work, and they missed out on about 150k in appreciation in one year...
Speak to local professionals and use their knowledge to sharpen your pencil.