Multi family Repairs

[Gregory McKinley]

Here are a couple of questions.

1. What formula do you use for calculating Interior Improvements that will be factored into the Agency debt for multifamily units?

2. What formula do you use for calculating repairs and cap ex reserves NOT factored into the loan for multifamily units?

[Danny Randazzo]

@Gregory McKinley for interior improvements you need to determine your own budget based on the scope of interior renovations. Interior renovations are not associated with your loan unless you are using a debt product that includes future funding for value add work.

Agency lenders typically require reserves depending on the deal and they have several reserve types. One being being, Replacement reserves which are usually $250/unit/year.