[Calc Review] Help me analyze this deal

[Ralph Poirier]

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[Tim Herman]

@Ralph Poirier There are obvious errors here. First rental in the world not to have a vacancy. I use 8%. Repairs of 1% or $40 per month. One plumbing call will wipe out 6 months of repairs. Do you know what Capex is? Anything that can wear out you need to budget. Let's look at flooring capex. Estimating your units @1500 sf each or 3000 sf of flooring. Life span is 8 years. It cost me $6 sf to replace flooring. 3000 sf*$6 sf=$18000/8 year life span/12 months in a year=$188 per month for 1 item only $148 more than your budget. Still need to budget for roof 25 year life span, appliances and hot water heater 12 years, hvac 20 years,etc. I use 10% for capex. With my numbers you will get less than 1.5% cash on cash. You might as well put it in a money market and get 2% with no tenant hassles.