My CapEx Projections on SFH (Based on Actual Numbers)

[William S.]

I recently went back through and found the real replacement costs of each major item. The previous seller had good records of everything so I decided to go back through to estimate my CapEx budget. I was surprised, yet not surprised how expensive it really is. There are a few items missing (plumbing, etc) but it's all copper. See table below:

I projected the costs until the 30-year mortgage expires. The orange cells indicate the estimated replacement year. As you can see I have some initial upfront costs (higher monthly budget) but then it decreases. The average I got was $166, but with 10% buffer is $182. That falls right into line with some of the articles on here which suggested around $180/m per house.

This house is in good condition and I still result with a fairly high budget.

After all of my expenses (mortgage, taxes, insurance, maintenance, vacancy, pm, lease fee) I am left with a Net Cash Flow of $180/m. This is a property in a B+ neighborhood in a good school district which appreciates.

I am not interested in selling but would like to hold this property. I also am not one seeking hundreds of rentals, but want a few quality homes to keep things simpler.

I do not want to payoff the home(s), but would rather have the tenant pay it down for me. However, Net Cash Flow of $180/m per rental doesn't seem like much.

Thought this would be worth sharing to others.