How is everyone out there estimating CapEx?

[Brent Murphy]

Hello all,

I've been analyzing several deals for small multi family homes and I took a suggestion from a blog post I found for estimating CapEx. The blog suggested putting aside $200 for capital expenditures, which I've been doing when running the numbers. However, last night I had attended webinar hosted by Brandon Turner where he walked us through an analysis of a rental property. He used a percentage of 6% instead of a flat amount. After the webinar I had two questions. How is everyone else estimating CapEx and do you adjust the amount of CapEx depending on certain variables? For example, would you change the amount set aside based on age of the property?

Your input is greatly appreciated and I look forward to reading your replies!