Long Term Rental COCROI

[Alex Lin]

When trying to calculate COCROI do you account for the rent lost when renovating a unit? 

For example, let's say I were to buy a 230K MF property on 7/1 and put 20% down and then put 50K worth of renos and can rent it for 3800 / month after. 

Cost of the loan plus taxes are 1763/month which can be covered by the tenants (2400) living there that require 60 days notice and renos would take another 2 months to complete after that. 

Would you just start the ROI calc after renos are completed and any costs incurred such as the loss of rent during renos be added to the denominator? Thank you!