Repairs and maintenance on small multi-family properties.

[Daniel Rivera]

Hey BP community-I know there isn't a set formula that can be used to reliably calculate how much one should set aside for repairs and maintenance on a buy & hold rental, but I've heard the average of ~$100/month is a safe estimate for a SFH while listening to a BP podcast episode last night. Taking this into consideration is it then safe to assume that if I'm analyzing small multi's that I should be calculating to set aside double, triple, or even quadruple that amount (depending on duplex, triplex, etc.)? I know there are other variables to consider when calculating this number (e.g. age of the property, current condition, etc.), but I'm looking to see if I'm in the right ballpark. For reference most of the properties I've been looking into have been ~100yrs old, and most have been renovated/updated. Thanks in advance for any input!

[Greg Dickerson]

Daniel,

Typically you want to budget by the door for multifamily. The less units the more you should budget per door as 1bad incident can cost a lot of money relative to the income.. The amount would be based on the condition of the property as you mentioned. $100 a door is a good general place to start for well maintained units.