First deal - estimating maintenance and repair costs
I'm in the middle of a negotiation of my first deal. It's a 1963 multifamily 4plex brick building. Total of approx 3500 sf. This is a low income neighborhood, I'm not sure if some of the tenants are section 8, I'll know that only if we go into escrow. The seller said repairs and maintenance are $1500 a year, which sounds a bit low. I budgeted $4000 (a year). The difference in this cost I did, pretty much make the deal a lot tighter for me based on the price he wants - leaving me on a 8.45% cash on cash (25% down).
My question is did I overbudget this or is that a decent cost for repairs in such a building?