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Updated over 6 years ago,
Repairs, Maintenance, and/or CapEx--Calculating savings
I am so excited to announce that after 8 months and over 10+ rejected offers I finally bought my first investment property!!! I already own a SFH. Now I'm closing on a duplex and will be moving in there, renting out my SFH and one side of the duplex. This certainly wasn't the first step, but it's a huge step! I am so excited. :)
I'm calculating what rent I will be charging in order to account for mortgage, vacancy, repairs, maintenance, property management, CapEx, and profit. I have per month: 5% for vacancy, 5% repairs, 8% for property management (already know this is the actual figure with the management company I'm hiring), and $187 for CapEx. I used the data I gathered from Brandon Turner's book "The Book on Real Estate Property Investing" to get those numbers. However, when using the rental property calculator on this website, the tool accounts for vacancy, repairs, maintenance, and property management, but not CapEx. Maybe the report is replacing CapEx with maintenance?
Suggestions on what I should be accounting for?