Updated almost 3 years ago on . Most recent reply
[Calc Review] Help me analyze this deal
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@Justice NA So you did a capex and repair budgets and those are the numbers you got. Here is a simple repair budget. How much to do a turnover + the cost of service calls over a timespan. You have a vacancy factor of 5% so a turnover every 20 months. Plug in the cost to do a turnover. Assume $1500 to repaint and clean the unit. Add 1.5 repairs at $150 per service calls. $1750/20 months = $87.50 per month per unit. This already exceeds what you are saving. One item in a capex budget is floors. Go to your favorite flooring stores and ask what the commercial warranty. Most are 10 years or less, that is your lifespan. Don't know the size of your multi so assume 2000 sf of flooring. My area it costs $6 sf to replace flooring. $12000/120 months lifespan=$100 per month for 1 item. Means you cannot even replace the flooring when it needs it. Still have to find other money for roof, hvac, appliances, hot water heater, bathroom and kitchen remodels.