[Calc Review] Help me analyze this deal

2 Replies

@Joshua Teixidor all your tenants will stay 33 1/3 months before moving. That is what a 3% vacancy factor is. I am more conservative and analyze at 8%. or 1 turnover per year. Have you done a capex budget. Mine includes roof, floors, appliances, hot water heater, hvac, bath and kitchen remodel, etc. Let's look at floors in a capex budget. You look at a commercial warranty, you will see that it is for 10 years. so I use that as life span. We will look at new floors and 5 year old floors. My area it is $6 sf to replace. Assume 1000 sf of flooring. $6000/10 year life span/12 months in a year=$50 per month. $6000/ 5 years of lifespan left/12 months in a year=$100 per month. This is only for 1 item.  No PM 10-12% of gross.

Originally posted by @Tim Herman :

@Joshua Teixidor all your tenants will stay 33 1/3 months before moving. That is what a 3% vacancy factor is. I am more conservative and analyze at 8%. or 1 turnover per year. Have you done a capex budget. Mine includes roof, floors, appliances, hot water heater, hvac, bath and kitchen remodel, etc. Let's look at floors in a capex budget. You look at a commercial warranty, you will see that it is for 10 years. so I use that as life span. We will look at new floors and 5 year old floors. My area it is $6 sf to replace. Assume 1000 sf of flooring. $6000/10 year life span/12 months in a year=$50 per month. $6000/ 5 years of lifespan left/12 months in a year=$100 per month. This is only for 1 item.  No PM 10-12% of gross.

This is great insight!!!!

Thank you!

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