Do you guys think I'm analyzing this deal correctly?

[Payton Pearson]

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[Tim Herman]

@Payton Pearson i don't know what your vacancy rate is in your area but 2% seems low. I usually use 8% 1 month out of 12. Capex seems low. 1000 sf of flooring per unit @ $5 = $5000 / 8 year life span /12 months = $52 per month * 6 units = $312 per month capex for floors. You have six sets of appliances, hot water heaters, HVAC, kitchen cabinets , toilets, etc. Their is a cap ex spreadsheet in the files section if you want to get more detailed in the number that should be inputed. When I am analysing properties as a general guideline I use 23% for vacancy,repairs, and capex. I also includes 10% PM. I don;t see any ground maintenance in the calculations.