@Russell BrazilUnderstood that capex is not an operating expense so technically it should not be included in NOI, I just prefer underwriting it like that to make sure I'm not over valuing a property when looking at it from a cap rate perspective. Of course, a seller would never include it in their cap rate but hey... why should they. I've been tracking a couple other discussions on BP where there's some heated debate on whether capex is above or below the line so not trying to re-hash that here haha
@Ned Carey Very true. It's hard enough getting accurate rent rolls from sellers let alone expenses...
@Brent Coombs Absolutely using sold comps, maybe to the point of excess sometimes... The 7.5% was the cap when I purchased, and renovations increased the NOI and brought the cap up a couple points. It was my first purchase so definitely learning quite a few things along the way but had to get my feet wet somehow. Regardless, it's cash flowing $650 / month / door after debt & expenses so I can't complain so far.
