Venturing into the investment world!
Hi, my name is Sheree & I hail from NYC! For the past few months, I've made a conscious effort decision that I am going to get involved in the world of real estate investing. I was a Manhattan broker for 3 years & in the last 8 months, I switched to the property management side. As much as I love it, I've realized that my key to financial freedom is to get in investing. I've been doing a lot of homework & have learned a lot about asset protection, rental income, flips etc., etc, but my real area of concern is deal analysis.
I'm definitely going to be using PM & HM, but I would love to connect with an investor/mentor who could help me analyze a deal & show me the proper way. I'd love to connect with someone or people in the NYC metro area for some much needed advice!
I can't wait to hear back from the knowledgeable folks on BP!
Most Popular Reply
@Sheree Fullwood Cap ex is short for capital expenses.
EX.
Water heater lasts 8 years it costs $800 installed. That water heater is costing you $100 year. but you don't see that cost for years down the road.
How much should you set aside for cap ex? Well ideally you create a chart of all the components of a property and est haw many years to replace each. Then divide the cost by the number of years. Add all those up and you have the amount to allocate for cap ex.
Many people use a much simpler system. I estimate $1500 a year for both cap ex and repairs. anything left over from repairs goes to savings for cap ex.