I am playing with the numbers to see if Pittsburgh is a market we want to invest in.
When analyzing the property, how much do you allocate for repairs/maintenance costs for older buildings in Pittsburgh?
Here's what I am taking into Expenses:
-P&I (principal and interest)
-Prop mng 7% (since it's a multiplex)
Logically, if it's a newly rehabbed property I'd do 5% for maintenance. Most Pittsburgh's buildings were built in 1900-1920 though... Do you go on a building by building basis to determine the % allocation for repair/maintenance?