All Forum Posts by: Jordan Krasner

hey TJ, thats interesting because the reply above states the monthly budgeted allocation would be considered an expense and pull down my NOI. There was no mention of total cash investment. are you saying each month i should add that 3k into total cash investment and not as an expense?

 awesome thanks for the reply :) 

so i'll add an extra line item in my annual expenses for CAPEX budget = 3k

but my follow up question would then be, in the 5th year, when i've now paid the capex budget for the 5th time totalling 15k in expenses but now i actually have to pay out the 15k, how will that now affect the cash flow?

also will this payout be added to my TOTAL CASH INVESTMENT since it is a capital expenses similar to initial renovations? 

here is a screenshot of my little homemade calculator i'm using to calculate COC% on potential properties i'm scoping out

hey guys, quick question

when calculating the cash flow or the COC % on a rental property, how does budgeting for CAPEX get factored in?

say i know in 5 years ill have to do the roof and it's going to cost me 15k, i need to budget 3k annually for it

the money isnt really an expense though as it's not being spent, but i am however losing cash outflow so it must affect the cash flow somehow?

as far as i know COC % = NOI - DEBT / TOTAL CASH INVESTMENT

where in this formula would the budgeting for capital expenditures get factored in?

thanks!!!

hey guys, im working on a COC analysis for some rental properties i am looking to purchase.

im just wondering one thing, 

let's say its a 3plex and 1 of the units needs work that you can only do at the end of year 1 because its currently occupied.

do you account for that renovation $ amount in your inital spend, or do you calculate it in year 2? do you calculate it in your total cash invested in every year?

here is a screenshot of my calculator i built:

notice 50k of reno's done in year 2... not sure how to go about that

thanks!