Question: How Are You Underwriting CapEx on Older Duplexes?”

I'm curious how other buy-and-hold investors are handling CapEx on older duplexes and triplexes (1970s–1990s builds).

Here in the Triad, a lot of these smaller multis still have:

• old electrical panels

• original plumbing

• worn roofs

• older HVAC systems

• aging windows

When I underwrite, I've been using 10–12% CapEx depending on age and condition, but I've seen some investors say they go as high as 15% on heavy value-add.

For those of you with long-term holds:

What CapEx percentage has worked best for you in similar markets?