@Ryan Wyke you are close to what i use for my calculations. I use 23% for vacancy, repairs and capex. This is not a very enticing purchase. You are only getting 2% return on the money invested. BBVA has a money market that is paying 2.4% with no risk.
Thank you Tim. That is a great call out. Do you consistently use 23% of do you vary that higher or lower based on age and anticipated maintenance?
@Ryan Wyke Depends if you can discount the property. Example roof 15 years old and a 25 year life span. If you can't discount the property you have to increase the capex to account for the cost to replace it or be willing to come up with the cost some where else.