@Eric Jung looks like a first analysis. Vacancy of 3% is 1 month out of 33 months. I like to use 8%. 1 month out 12. No repairs. Leaking faucet or burner doesn't work. Each will cost a minimum of $100. 5%. Capex of $10. You still have to pay for interior changes. Example changing the floors. 1000 sf @ $5 sf = $5000 / 8 Year life span / 12 months = $52 per month. You have to account for HVAC,hot water heater, kitchen remodel, bathroom remodel, etc. Since you have a HOA might get by with 6%.
Hi Mr. Herman
thank you very much for looking into this analysis ! I ll take your advise for vacancy and capex %. It make sense. Thank you
@Eric Jung for people to be notified you have to tag them. Use the @ sign and start typing their name. It will appear and double tap it and it will go into the comment box and then they are notified. Especially helpful if you have any questions that you would like answered.
@Tim Herman, well noted thank you.