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Gil Keren
  • Investor
  • San Francisco, CA
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Am I estimating CapEx and repairs too high?

Gil Keren
  • Investor
  • San Francisco, CA
Posted Oct 23 2020, 12:42

When evaluating deals for those 80k-100k SFRs in Indy, I allocate 10% of the rent for maintenance/repairs, and additional 180$/month for CapEx, per the computation at: https://www.biggerpockets.com/.... On the one hand, I think evaluation CapEx in the way explained in the link makes sense. On the other hand, for a 1000$/month rental, I allocate in total 280$/month for fixing thing in the house (100 repairs + 180 capex), which sounds excessive. 

I want to hear from actual landlords, what is a fair estimation here? Do you really need 1200$/year for small repairs? Do you really need to paint the entire house and replace flooring for a total of ~5k every 5-6 years? How much do you actually spend on those things?

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