Deal analysis- cap ex, repair, etc

[Andre Williams]

Hi BP,

I am analyzing a deal but I am not sure how much% of monthly rent I should consider as cap ex and repair. Any conservative number? Some says 5%, the other says 10%. I may put 8%. Does this sound reasonable?

I consider these as cost

P&I

HOA

Insurance

Tax

Cap ex

Repair

PM

Closing cost

Rehab

Am I missing anything?

[Jaysen Medhurst]

@Andre Williams, I use 15% of GSR for repairs and CapEx combined, but I'm pretty conservative with my numbers.

You're forgetting vacancy, utilities, trash, lawn care, snow removal, marketing, legal. They won't be applicable to every property, but you need to at least be aware of them.