[Calc Review] Help me analyze this deal

[Michael K Olson]

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Analyzing properties in my neighborhood and found this duplex.

It looks to be in good condition recently remodeled with month to month tenants occupying.

Let me know what you think.

*This link comes directly from our calculators, based on information input by the member who posted.

[Tim Herman]

@Michael K Olson There is a very good capex spreadsheet in the files section by @ sam tato. You can build your own. Each property will have its own number for capex. I showed you how to do floors. You find the life span for the other major categories. Roof 25 years. appliances 12 years hot water heater 10 years hvac 20 years. A 1000 sf house will have a different capex number than a 2500 sf house. a $5000 roof/25 year life span/12 months in a year=$17 per month. What happens when the roof is 15 years old. Your new effective life span is only 10 years. $5000/10 year life span/12 months in a year=$42 per month.

A maintenance budget is similar. Estimate the cost to do a turnover plus estimate the number of service calls during the same time period. With your 5% vacancy that is the equivalent of a turnover every 20 months. 5/100=1/20. Assume it costs you $1500 for a turnover plus 2 service calls at $150. $1800/20 months=$90 per unit. You can do a major turnover between 3 to 5 years and just touch up in between.  Let's say for a touch up it costs you $500 and you do a major every 60 months. 2 touchups=$1000 plus major $1500 plus 5 service calls@ $150=$750. $3250/60 months=$54 per month per unit.