analyzing our 1st BRRRR, thoughts and comments would help...

[Matt Ziegler]

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[Whitney Hutten]

@Alexander Bacon Here's what I see: 1. Vacancy is too low. A turn that takes 1 month is 8%. Don't confuse the vacancy rate your PM gives you for what you should put in your proforma. 2. Capex and Maintenance are too low. From your rehab numbers I can tell you aren't taking care of 100% of the capex... which is perfectly fine. The does mean you need to set aside reserves for the items you know you will need to replace in the next few years. 3. In this market, I think rent growth of 5% is too aggressive. Your first year it might be 0% a we still work through the economic fallout of COVID. 4. I think your appreciation of 4% might be somewhat agressive as well. I take this with a grain of salt as long as your market is already trending downward. 4. Are your tax numbers correct? Those are some really low taxes!