Deal Analysis for New Build

[Benjamin Sampson]

Good morning, 

I am a newbie to REI and am looking to invest in Colorado Springs (COS) market. I used to live there and I know the town really well.

If you know this market, you know that there is a TON of new construction. One of the things I have been researching is purchasing a new build town home in COS. 

When analyzing a new build is it safe to lower the % on repairs and cap-ex? I was thinking of lowering it from 5% to 3%, just because everything in the house is brand new. Is this a safe way to look at it, or should these items stay at around 5%?

Thanks so much!