All Forum Posts by: Darius Amani

@Darius Amani - I hate to say this but...it depends. If I have just finished rehabbing a property and I know the roof, HVAC, windows, driveway, water heater, plumbing and electrical is all new then the Cap ex is low for me. If the property is older and you know any of those major systems needs replacing sooner than later - I would go with 7 to 10%. 

Vacancy - I always calculate it so at least one month of rent is stashed away over 12 months. Typically 6 or 7%. 

Repairs and maintenance - again, it depends. Are you doing the work? What is the condition of the property? Are you tenants handy or have you written into the rental contract that repairs under $25 need to be completed by your tenants? 5 to 10% is good. 

Growth of 2% is responsible.

If you are buying you have a $1500 to $2000 in closing cost. If it is a long-term hold I wouldn't factor in sales expense yet or make it minimal. I usually factor in my sales expense over five years in case I do decide to sell early/1031.

Darius,

I figure in 8% for vacancy, 10% for repairs, and 10% for capex.  I would rather be on the safer side when configuring numbers.  Other factors that would influence you: are you performing the repairs?  What is the age of the property?  What is the rental market like in the areas that you're looking into?  Watch the BP tutorials for these spreadsheets too.  They are helpful for initial guidance. 

@Darius Amani - 10% is standard for PM. It will decrease if you have multiple doors but not much. Use 10% as your number initially. Anything less is more money in your pocket. 

@Darius Amani what area of KC? MO or KS? What portion of the calculator?

Why don't you join us at the next BP meetup on Nov 9th?