Advice for figuring out Vacancy Rate, Maintenance and CapEx?

[Victoria C.]

I'm a newbie using the Deal Analysis software here on BP. I need advice on what percentage to put for Vacancy Rate, Maintenance and CapEx. The software recommends a range that's quite large, so I want to know what experienced landlords suggest I use.

CapEx -- I guess this is based on the individual house I buy and the age of the systems (Roof, HVAC, water heaters, etc) and what I replace at the outset. I'm looking at run-down properties, so a lot of these things will be new after a reno.

Vacancy Rate -- Maybe I'm wrong, but it seems to me that the houses I see that sit vacant for long stretches here are overpriced, and the ones competitively priced go quickly, so looking at the "average days on market" doesn't really tell the whole story.  Thoughts?

Maintenance -- I'm in a northern suburb of Houston and its wet and hot here, so we get a lot of maintenance issues, from rodents, to rot, to brittle pipes. I know my own home requires a lot of upkeep $$$.

Thanks for helping me get a better grasp on all of this!

[Bradley Buxton]

@Victoria C.

CapEx varies by project, but contractors can often provide rough estimates for major work—windows and roofs are generally easier to predict than unexpected issues.

Vacancy rates can typically be sourced from local research firms. For example, Reno, NV has a 3% vacancy rate, confirmed by quarterly studies. A quick Google search should help find Houston-specific data.

For maintenance costs, consider reaching out to local property managers. These will depend on the home's age—new builds usually have warranties and fewer issues.

Lastly, double-check rent estimates on the BP calculator. Rents can fluctuate significantly based on location barriers (e.g., freeways). We verify with Zillow and RentCast.