Rental Property Investor · Smyrna, GA · Member since 2016 · 86 posts · 28 votes
Question for those who have purchased Condo's, Apartments, etc. When doing your analysis on these types of properties do you typically allot less to Capex/Repair expenses? Seeing as how I assume you would never have the major expense of replacing a roof or maybe even an HVAC system as some high rises may not have individual HVAC units for each apartment it seems you could allot less to this. That would make it seem you would only have to allot for minor fixes here or there. Just curious to get the opinions of others on this. Is there a standard Capex/Repair percentage that you use that I may have missed? I'm a newbie after all...
Real Estate Agent · Naperville, IL · Member since 2013 · 402 posts · 177 votes
9y
@Ryan Horne yes you can account for less for the cap/ex, but I would not put it at 0%. I like to account for a 3% increase in the HOA's annually. They may go up this much, they may not, but at least you have it built in your numbers beforehand. You think you don't have to pay for the cap/ex, but the HOA's you are paying each month are for exactly that.....