Factoring in Repair Costs when Analyzing Multifamily Deals

[Ike Ekeh]

Hello Everyone-

I am a new multifamily property investor and I am currently analyzing listings in the Tucson, AZ & San Diego, CA area with the hopes of closing on my first property in Q1 of 2018. I'd appreciate advice from the BP Multifamily investor world on how to make accurate and conservative estimates on how much $$ I should expect to allocate towards capex/repairs. 

If you have some rules of thumb and general guidance to go by, that would help!

Thank you!

[Lee Ripma]

You’re really going to need to model all repairs before you buy. Think about the sf of each unit you will renovate, what you’re going to do, and what the cost is. Also you need true costs for exterior repairs like painting and roofs, a percentage won’t work. I paid for a spreadsheet from Michael Blank of on modeling all this stuff. His is really for very large MF, smaller MF that you’re just buying for yourself is different. PM me and I’ll send you a modified spreadsheet I made.