@Joshua Acosta I see no PMI on the loan. Less than 15% down there will be PMI unless it is a VA loan. If this is a purchase in CA then you taxes will go up. I would estimate $525 per month. No PM. Did your capex budget return the $190 or did you use a %.
Realtor · Los Angeles · Member since 2021 · 22 posts · 12 votes
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Hello, for the Capex I used a percentage. I'm very new to this world, any advice on what to look for and what to know will be much appreciated. If you can guide and link me to where I can learn these things, I would appreciate that as well.
@Joshua Acosta first thing you need to learn is how to tag people. Use the @ sign and start typing their name. It will appear and you double click it. They are then notified that you replied. Especially helpful if you have a question.
Property tax in CA is regulated by prop 13. 1% of purchase price and no more than a 10% rise per year. So I analyze at 1.1% of purchase price to get the new tax bill.
Capex is determined by lifespan of major components. Roof 25 year life span, floors 10 year life span, etc. I will give you an example how capex works. Say you buy a house with brand new floors. Commercial warranty on most floors is 10 years(lifespan). For example: assume 1000 sf of flooring. My area it is $6 sf to replace($2 sf to lay, $1 to tear out and $3 sf flooring). This where you have to find out what your costs are. Different all over. $6000/10 year life span/12 months in a year= $50 per month for 1 item in a capex budget. Now you look at a property with 5 year old floors. New lifespan is only 5 years. Your capex just doubled to $100 for that 1 item. There is a capex budget in the files section by @ Sam Tato. You could download it and start calling contractors on what it would cost for each item in the capex budget.
How many of the guides that BP has, have you read. Education should be your primary focus.
I haven't read any guides on BP yet. I've been educating myself via books, groups and YouTube. Started using the calculator to familiarize myself with absolutely no idea what I'm doing and learn through trial and error.
There is so much information out there, therefore I'm trying to consume what I find and ask questions as I go.
How do you determine how old the flooring is? Are there documents the owner keeps in their records?
Thank you for the information, I will keep a note of this, really informative.
@Joshua Acosta the numbers I used are what a commercial warranty is on flooring. You might have some flooring last 20 years some only last 5 years. Your base for flooring in the situation is $50. Important to know your base amount. Did you look at the capex budget I mentioned. It lists most major capex items. You always ask how old things are so you can start planning, Older properties will have a higher capex number until things are restored.