All Forum Posts by: Hemang S.

Thanks @Taylor L., @Nick B., @David Brent, and @Justin Goodin! What you said makes a lot of sense. Now that I think about it that way, I probably overestimated the cost of repairs and cap-ex a little bit since the rental income is high. That's a lucky error!

I'll look out for some detailed explanations for calculating a cost per unit for repairs and cap-ex. Thanks again!

Hi BP community, this is my first post!

I am looking for a 4 unit multi-family and have identified some candidates. I want to know if using 7% (of gross rental income) for repairs, 7% for cap-ex, and 7% for vacancy is reasonable, or too high, or too low when running the numbers. I've talked to several small multi-family owners and none of them account for this much of an expense, but I've seen Brandon on BP videos do it all the time. In your experience, what are reasonable percentages to use (the property is a decent condition 100+ year old building)? If there any any strategies for figuring this out for a specific properties, I am all ears! Thanks!