CapEx and Repairs for Rentals

[Nicholas Anderson]

Hi Everyone,

What are you using for your monthly CapEx and Repair estimates when doing your analysis? I am currently using 12% combined for a light renovation and 10% combined for a heavy renovation. Both of these numbers seem a little aggressive, but I don't mind using them to add that extra layer of risk mitigation. My market can command rents between $1,400-$1,800 a month so in practice I am setting aside $168-$216 for a light renovation or $140-$180 for a heavy renovation. Obviously making the numbers work under these constraints is very challenging, but I don't think it is impossible when the right deal comes along. Looking forward to everyone's thoughts.

Thanks,

Nick