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Updated about 1 year ago on . Most recent reply
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Best practices for predicting vacancy, repairs and Cap Ex rates of LTRs?
I'm finding rates ranging from 3-10% of monthly income for each of these across different sources. This obviously has a huge impact on analyzing the cash flow of a potential property. Reading the BP 2024 report the advice is to be conservative so up until now I've been analyzing everything with:
Vacancy - 10%
Repairs - 10%
Cap Ex - 5% (although this is highly dependent on the age of the home and the value of the home, so I'm tracking that with a bit more nuance)
Any advice? Am I being too conservative?