All Forum Posts by: Jamall Lynch

Thanks Peter. Some good notes to take back to the drawing board.

Thanks Alecia! That’s an awesome approach. I appreciate your words of wisdom.

Thanks Allan, I really appreciate your advice and feedback.

I appreciate the feedback Drew.

Thanks Bill. I appreciate the transparency and for you putting things into perspective. This is the type of information I really needed.

Thanks Simon for the feedback. This is definitely some great information to note.

Top of the afternoon BP family,

I'm a newbie who recently came across a formula on how to budget for CAPEX. It says that I should take the cost of the repair and divide it by how many years it will last and divide that number by 12 months to get the dollar amount that I should be tucking away every month for that expense.
For Example: Let’s say it’s a $20,000 roof that will last 10 years. 

20000 ÷ 10 ÷ 12 = 166

This formula states that I should be setting aside $166 per month for this expense. 

I've also heard a few investors say that it's a good rule of thumb to set aside 10% of my gross income every month for CAPEX. Which metric is best to use when accounting for CAPEX? And what are some additional CAPEX items that I should be factoring in besides the roof and HVAC? I'd greatly appreciate your input.

   

Thanks Tyler, I really appreciate the response. This is some great information.

Good afternoon BP family, I'm a newbie that is going to invest in the Dayton, Ohio market. I'll be investing out of state and I'm looking to acquire a turnkey duplex at a cap price of $100K. I've already made some calculated evaluations in terms of the expected operating expenses, the mortgage, closing costs, and a 20% down payment. My hypothesis is that I should be putting aside around $33K to cover the down payment, closing costs and about 6 months of reserves for PITI. Is there anyone in this market that can give me idea of how much I should have tucked away to make a deal like this happen? I'd greatly appreciate it!

Good afternoon Bigger Pockets Fam, my name is Jamall and I’m a newbie and I’m looking forward to networking, building, and adding value to the community.