@Faith Riddering where are you getting your numbers. Vacancy of 5% is 1 month out of 20. I use 8% 1 out of 12. CAPEX of 6% = $69 . Examples of capex. Roof $7500 / like span 25 years / 12 months = $25 per month. Flooring 1200 sf @ $6 sf = $7200 / 8 year life span / 12 months = $75 per month. 2 items exceed your $69 budget. Still have to account for hot water heater, HVAC,painting, minor kitchen and bathroom cabinets, appliances, etc. I use 15% between capex and repairs. I like to underwrite more conservative with a 23% budget for vacancy, repairs , and capex. On a turnover some of the expenses could be in any of the 3 categories.
@Tim Herman thank you for your thoughts. Like I said it’s our first time and need the input.
The units have long term renters in them and they have been there for years, but understand that stuff happens.
We were planning to put a new roof on and the HVAC units look to be about 3 years old, but will add to those numbers as well.
Thank you again for your time!