Cap ex, repairs, vacancy and PM

[Pete Hornstein]

when analyzing deals I am using 10, 5, 10 and 12 percent for repairs, cap ex, property management and vacancy rate respectively. These are conservatively high in my area just so I know we can “hit the mark”.

Question: do you guys keep those percentages constant between properties in same market? Or do you analyze the potential and adjust for each property? So a real nice well kept 3 unit 1 bed 1 bath may have different rates than the 4 unit 2 bed 1 bath in different part of the city.

Just curious.

[Pete Hornstein]

@Anthony Wick

It’s Bloomington, IL. Sure they are high ... no doubt... but I look at it as worst case scenario. I got one deal under my belt and going towards more. Fine tuning as I go here.