What percentages to use for CapEx and Vacancy in calculator

[Josh Benitez]

I have a multifamily in ft Lauderdale, FL deal but im running the numbers and I want to make sure im using the correct percentage in the calculator for Capex and vacancy. Also, how do I find out what the cap rate is for the area? Thanks in advance.

[Erik W.]

@Josh Benitez, depending on the age and condition of the property, 3-7% is a typical range for CapEx.

I use 5% for vacancy, which appears to be somewhat "standard" for the industry, but as always it depends on your local market, so this may vary.  Properties in poor condition should plan for much higher rates during renovations.

Call a few commercial Brokers in your area and ask about typical cap rates.