Capital expenditures for 19 units

[Dominick Dahmen]

This property I am looking at is early 1900's. The pro forma shows 10% for maintenance and repairs. Would you include capital expenditures in that? Or add an additional 5-10%?

[Greg Dickerson]

CAPex is not part of the operating costs and not used to calculate NOI. It is a separate line item on the overall proforma.

It’s hard to say what to budget for a building like that without knowing everything about it including income, current condition, type of construction, existing systems etc. You should defer to a management company and contractors in the area that handle similar properties.