[Calc Review] Help me analyze this deal

[Orlando Perez]

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[Tim Herman]

@Orlando Perez I use 8% vacancy(i month out of 12) 5% repairs, and 10% capex. Most beginning investors underestimate Capex. For capex let's say everything is brand new. The numbers provided are for example. You have 2000 sf of flooring. In my area it is $6 sf to replace. $1 to tear out,$2 to install and $2-$3 sf for the luxury vinyl plank. The IRS code for floating floors is 5 years but I use 8 years for replacement(some use 10-12 years). 2000 sf *$6 sf = $12000/8/12 months in a year = $125 per month for 1 item. You still have to account for roof 25 year life span, appliances and hot water heater 12 year life span, hvac 20 year life span etc. These are all assuming brand new.