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Updated over 6 years ago,
Analysis Question on Multi-Family
Hello BP Community
I'm currently learning everything I can on apartment acquisitions and proper analysis. My question is, when running the numbers do you include the CapEx and or Reserves as part of the operating expense portion? I know to always account for these, but I can account for them outside of the expense realm and sometimes it can be the difference in a good deal and one that will require more value adds. I also notice Repairs, Reserves, CapEx and Maintenance are interchangeable at times when viewing data on listings. I'll see Maintenance or Repairs, or Reserves for example. Most recently, I've seen CapEx included in Escrow. I'm a bit confused.