Estimating Vacancy and Cap Ex Expenses

[Mike Ganske]

I'm looking to buy in the mid-west. Curious to see how much does everyone estimate for Vacancy and Cap Ex Expenses. I've seen quite a range when I've researched this so Id like to hear first hand how much others estimate/budget for these. (FYI, I'm doing a BRRRR). Thanks!

[Will Fraser]

@Steve Morris and @Forrest Faulconer have offered some EXCELLENT guidance here!  

I'll add:  there are some construction trends and factors that you can learn along the way to significantly optimize your operations and they are VERY nuanced.  Examples of what I mean are:  in the late '40s and early '50s a "heavy wall" became a common iteration on a pier-and-beam foundation.  Very nice!  1983+ you're assured NO LBP, asbestos, OR galvanized plumbing.  1979-1982 it's variable as many of these things were working themselves out of the system.  Before something like 1960 most powerlines ran overhead.  After something like 1980 the trend started to change (more or less depending on area and codes I suspect).  Overhead powerlines are WAYYYY higher maintenance, and you see that during things like ice storm, wind storms, and downed tree branches.

Little things like those can help you target properties that are just a year or two over the line into the lower-maintenance category.