[Calc Review] Help me analyze this deal
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@Dolly La Salle I assume the rent is after the 12 month lease. It's $150 more than you are currently getting. 5% vacancy is 1 month out of 20. I use 8%. Repairs of $600 per year might be okay. Capex is way low. I use a minimum of 10%. Floors have a lifespan of 8 years. Let's assume you have 1200 sf of hardwood floors. In my area it is $3.50 to sand and refinish, 1200 sf *$3.50=$4200/8 year life span/12 months in a year =$44 per month. You still need to budget for a roof 25 year life span, appliances and hot water heater 12 year life span, hvac 20 year life span, driveway 20 year life span, and others i could name.
@Tim
@Tim Herman Thank you very much for your feedback. I truly appreciate it. I decided not to buy this property. I have learned to make my calculations more accurate. For a house that has been recently updated, do you still charge a minimum of 10%? The numbers that I need to account for that is mentioned in your feeback has been very helpful. I've added it to my notes! Thank you.
@Dolly La Salle It's more accurate to use numbers instead of a percentage. I use a minimum of 10% capex for sfh. There is a spreadsheet that @ sam tato created that has the capex and the amount of time before it needs to be replaced. It is located in the files section of BP.
@Tim
@Tim Herman Thank you. I tried searching for Sam Tato's spreadsheet here in BP, but was unable to find it. Can you please provide the URL where it is posted? I appreciate it. Thank you! Do you use this spreadsheet every time you analyze a deal?
@Tim Herman Thank you very much for the CapEx spreadsheet. Much appreciated!