HELP!!! Am I analyzing this deal correctly

[Jesse Barahona]

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[Tim Herman]

@Jesse Barahona I'm always curious how people arrive at a CAPEX budget. MIne includes but not limited to: roof 25 year life span, floors 10 year life span, appliances and hot water heater 12 year life span, hvac 20 year life span, bath and kitchen remodel 20 year life span. Assume you put in new floors when you buy. Assume 1000 sf of flooring. My area I can replace the flooring for $6 sf for a moderate lvp. $6000/10 year life span/12 months in a year =$50 per month capex for 1 item. This is more than your budgeted amount, guess what that will come out of pocket. I like to use a dollar amount, but if using a % then 10%. Vacancy of 5% is 1 month out of 20 months. I use 8% or 1 month out of 12.