Estimating Repair & CapEx Reserves for Different Age Propterties

[Wade Luhman]

Hi Everyone,

When running your numbers on single family homes for long term rentals do you change your regular maintenance and CapEx reserve numbers when looking at homes of different ages? For example, a home built in the 1950's/1960's versus one built in the 1980's/1990's (assume both are in decent condition that could be rented as-is, but have not been remodeled).

I realize there can be a lot of factors that play into this, but I have currently been running the numbers about the same way for almost all the properties I have been looking at. I feel that when I start adjusting things I am trying to "make" a deal when the numbers don't look that good. I am currently budgeting for 10% of monthly rent for CapEx reserves and 7.5% for regular maintenance, but don't have any properties yet to compare real numbers.

Thanks