Average Memphis Maintenance & CapEX (Turnkey Properties)
Hi Everyone,
I am looking at investing in Memphis through a turnkey provider. I am wondering what local investors use for Maintenance and CapEX rates for Memphis? From what I've seen so far, most Turnkey providers don't really account for maintenance or CapEX or they just group them together, which I disagree with. Roughly speaking, I am considering using 5% of monthly rent for CapEX and 6% for vacancy. Does that sound too low, or too high? This would be a fully rehabbed property, so I am expecting CapEx would be low, but I want to make sure I save up enough during say the initial 5 years so I don't lose money when say a roof needs to be replaced. If it helps more I would be looking at properties in a B neighborhood in the 90-100k range.
Please let me know if you need anymore information.
~ Caleb