All Forum Posts by: Tyrel Gordon

@Todd Dexheimer @Charles Carillo

Thank you for the info! Having a higher percentage of the income per unit makes sense on smaller properties since there's less to draw from vs large complexes. Therefore, if I was doing an analysis on a property going by the rules of thumb the sheet should include something like the following: $250-350/unit/year CapEx + $500-$800/unit/year for repairs/maintenance?

And Charles, going back to your point about new investors often underlooking reserves and working capital when purchasing I have noticed that they do get mentioned less in the educational material about deal analysis than the more prominent parts such as understanding NOI or COC. Which, as I've slowly built up my understanding of multifamily, I found strange. I would imagine planning properly for unforeseen events would be one of the most pertinent things to teach new investors.

Hi guys, I'm a new real estate investor looking to purchase my first multifamily. I've been doing reading on deal analysis, listening to the podcasts here (Great source of info!) and everything else needed to be successful as an active real estate investor. I'm specifically interested in multifamily housing, and I've been gearing my reading towards gaining information in that niche. Now, my question is for those of you who are experienced in deal analysis generally how do determine the amount of rent collected per unit that you set aside as a reserve for Cap Ex, emergency repairs and other unforeseen costs? I've read both as a percentage of each unit's rent or a flat amount per month per unit. I'm sure either method can be viable under any circumstance, but I'm more so curious about what the experienced investors have found to be the better route. Is there anything besides deferred maintenance that might increase/decrease the reserves you set aside?