[Calc Review] Help me analyze this deal

[Flor Del Rio Le]

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[Tim Herman]

@Flor Del Rio Le Have you found the unicorn. The only property that doesn't have capex. My capex budget includes but not limited to: roof 25 year life span, floors 10 year life span(except carpet only 5 years), appliances and hot water heater 12 year life span, hvac 20 year life span, bath and kitchen remodel 20 year life span, etc. let's assume you have 1000 sf of flooring and it is brand new the day you purchase it. In my area it is $6 sf to replace. $6000/10 year life span/12 months in a year= $50 per month in 1 item. I use a minimum of 10% for capex. Vacancy of 5% is 1 month out of 20. I use 8% or 1 month out of 12. Didn't include property management 10%. Your capex budget could be a lot higher if not everything is brand new the day you buy it. Example roof replacement $6000. 10 years old so 15 year life span left. if brand new $6000/25 year life/12 months in a year =$20 per month for roof if brand new. $6000/15 year life left/12 months in a year= $33.33 per month. Capex is the silent killer of profits.