[Calc Review] Help me analyze this deal

[Craig Herrmann]

This is my first Bigger Pockets rental analysis and review request. Looking for some feedback.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Thanks,

[Tim Herman]

@Craig Herrmann Your expenses might be a little light. I use 8% vacancy,5% repairs, and 10% capex. Look at floor capex. assume each unit has 1000 sf of flooring. Life span of 8 years. $6 sf to replace. 4000*6=$24000/8/12 months in a year= $250 per month. Need to budget for roof 25 year life, appliances and hot water heater 12 year life, HVAC 20 year life, etc. Capex is the most underestimated expense in owning rentals. You might want to get an insurance quote and plug in better numbers, I pay $700 per year on a sfh for a rental policy.

[Craig Herrmann]

Thanks for the feedback @Tim Herman. I will adjust the numbers as you have mentioned. Do you know of any documentation here on BP that outlines the CAPEX in more detail? Thanks again.

[Tim Herman]

@Craig Herrmann There is a spreadsheet that @ sam tato did that outlines most everything you can imagine, even things I did not consider like gutters and driveway replacement. It is in the files section and iI believe it is called cap ex, two words. If you can't find it message me and I will forward it to you. 

[Frank Geiger]

CAPEX is really determined by the cost of labor and materials in your area. Make sure to adjust the spreadsheet by line item if you live in ones of those higher cost areas. It also changes with time. Demand for labor has gone up forcing wages up and ultimately raises your replacement costs. My point is to add some buffer into this number.

[Craig Herrmann]

Hey Guys,

Thanks for the feedback and the support. I found the file and will adjust accordingly.