[Calc Review] Help me analyze this deal

[Orlando Perez]

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[Jaysen Medhurst]

@Orlando Perez, in my own pro formas I use 7.5% each for Repairs and CapEx. I've seen others use 10% CapEx, 5% Repairs. I think that as long as that total amount is going to reserves, you'll be in good shape. Ideally, if you get serious about a property you do some calculations on the major CapEx and plot them out. E.g. it's fine to put 15% away, but if both your roof and water heater are approaching the end of their useful life, you probably won't have enough put away to cover both in the near term.

Insurance is super local due to weather patterns, crime, etc. The same building and valuation can be 2-3X difference from Texas to Oregon to Ohio. Best to speak with a local insurance agent and get a sense from them. They may be able to ballpark: $50/month for every $100k valuation or $35/unit/month. At least that gives you something to use in your pro forma analysis.