Seeking advice on CapEx estimations

[Anish Patel]

Hello BP community,

I was inspired by this article to improve my approach to underwriting CapEx costs for buy and hold investments.

I'm looking for rough estimations through this form to hopefully crowdsource reasonable estimates for an average 2 - 4 unit multifamily. Once I reach a critical mass of responses, I would be happy to share back on this thread what I find in aggregate, so you could all have it as reference too.

Best,

Anish

[Curt Davis]

There are several ways to look at this. A simple method is to account for the roof, hvac, and hot water tank. Figure out the cost and divide by the average lifespan to come up with your CAPEX. 

Personally, I think investors kill deals that are good with so many what-if expenses that they turn them into bad deals on paper.