Maintenance, repairs, and cap ex

[Travis Cripps]

Hey Guys,

Question regarding projected maintenance, repairs, and Cap Ex. I've heard and read opinions on the anticipated expense percentages when evaluating a property (10% property manager, 10% repairs, 50% rule, etc.). For new construction, do you use a lower repair and cap ex projection? It seems obvious that repairs and maintenance would be significantly less. But from an investing/risk reduction standpoint, it seems unwise to budget zero or 1% for these categories. Any thoughts on this topic? Success stories or brutal experiences with new construction?

Thank you in advance!

Travis