Apartment Repairs and maintenance costs when underwriting

[Justin Pumpr]

Hey all,

What numbers do you use when projecting repairs and maintenance costs for apartment buildings?

My rules of thumb have been:

- $650/unit for 2000s or newer and $250 for cap ex

- $750/unit for 1980s-2000s and $275 for cap ex

- $850/unit for 1960s-1980s and $300 for cap ex

There is definitely some nuance here, but let's assume these properties have had "cosmetic updates" throughout, but have never been full guts. I'm looking at C/B class properties in C/B class neighborhoods in the midwest.

Do these numbers look about right? Are there other factors that should be taken into consideration? Is this model completely wrong?

Cheers!