[Calc Review] Help me analyze this deal

[Account Closed]

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[Evan Polaski]

@Account Closed, to add to Tim's comment (since he and I see eye to eye on this), a refrigerator repair or replacement will basically cost the same for a 1,000/mo rental and a 2,000/mo rental, but the % will be half or double, depending on which way you look at it.

With the point Tim is making, if you plan on owning a house 10+ years, you will likely be replacing almost everything, unless it is brand new now. And $20k repair budget will not get you far. Depending on the house, $20k will get you a roof, HVAC and water heater, maybe. Kitchen remodel (new cabinets, counters, appliances, backsplash and lighting for just the kitchen) will likely cost $20k. Or the most fun, a collapsed sewer line from basement to street can cost more than $20k to replace. In any of these scenarios, the point is, $20k will not get you far enough to have "almost everything new", and even if it did, in another 10-15 years, you will likely need to redo a lot of it again, so you need to be reserving a more than 10% Capex if you want to have enough in the bank to pay for the items when they arise.