Investor · Atlanta, GA · Member since 2020 · 18 posts · 6 votes
Hello BP,
Wondering if someone can help with how to run repair costs, cap ex, etc on a new construction rental? With it being brand new, having a tough time running the numbers. Thanks in advance for your help.
Investor · Austin, TX · Member since 2016 · 531 posts · 310 votes
5y
@Jeremy Luster So, that number that you will save is ultimately up to you. On non new construction I use 8-12 percent depending on how bad the place is. So, if you use 5% savings for the first few years you should have no problem!
Investor · Atlanta, GA · Member since 2020 · 18 posts · 6 votes
5y
Hey @Antonio Cucciniello and thank you for your response. So you take out 8-12% total across the board for everything? All minor repairs, cap ex (future big repairs), etc? So assuming I'm using your advice of 5% on say $1250 per/month rent, you'd put $60-$65 in an emergency acct every month and that's it? I realize everyone's different and some more conservative than others but just want to make sure I'm saving enough although it's new.