Determining cap expenses percentage

[James Rohrbach]

Hello BP community.

 
I have been analyzing some 5 unit multi-family properties lately and was wondering when factoring in cap expenses at 5%, should that percentage be per door for 25%, or should it just remain at 5% in total? 

Thank you!!

[Tim Herman]

@James Rohrbach it should be a dollar amount not a percentage. If the rents are $500 vs $3000 per month and you collect a percentage you will be low on the $500 per month and in excess on the 3k per month. Each property is unique. You said this was 5 units. Are they 5 individual houses or all in 1 building. You will have a different capex number for 5 individual houses vs 1 building. 5 roofs will cost more than 1 big roof.

You also need to do repair budget to see how much to save each month for that.