All Forum Posts by: William S.

2 bed 2 bath. 

I have done that. Zillow says $900/m rent but rentometer says $725/m. This is the largest gap I have seen comparing the two.

@Dawn Anastasi

Just curious, how has this unit been going? I'm considering purchasing a condo as well.

Hi All,

Can anyone tell me about this area. There's a lot of multifamilies. I'm looking at purchasing a condo to rent out. C-class/B-class? If you invest there what kind of rents are you getting?

Thanks

@Martin Andersson

How did you arrive at those numbers?

My current approach is to set aside $1,000/year for repairs and maintenance (per house). Then take HVAC, roof, AC unit (did I miss anything?) lifespan and break the replacement cost down into a monthly amount. Things like flooring, paint, cabinetry is part of my $1,000/year repairs and maintenance budget. I see these as items that tenants can break down, therefore I put it in the repairs budget. Thoughts?

I've been trying to learn as much as I can on CapEx and am still struggling budgeting for it. There are so many ways of thinking on this. What do you consider CapEx items?

• Major Items: Roof, HVAC, Water Heater?
• Major Items + flooring, cabinets, paint, windows, etc.

To me, having a roof leak or the AC unit dying is a major problem, but old cabinets/paint is entirely different. This is how I see things.

• CapEx: Roof, HVAC, Water Heater
• Maintenance items: flooring, paint, etc

I think these are two different budgets. What do you think/do? How much are you budgeting for each? I buy properties (sfh) that are all newly renovated and everything is less than 1 year old. Any suggestions on my budgets? Thanks!

@Jim Adrian

I recently did this and came up with $200/m over a 30-year hold. That seems really high/conservative? This is a renovated property as well. I also set aside 10% per month ($98) for maintenance items. This leaves me with $100/m of cash flow.

I've debated if I should pay the property off, before I get my second one to help with the low cash flow. 

If I hold the mortgage (which is fixed) rents will rise over the long term, while my mortgage amount remains the same. However, wouldn't the cost to repair CapEx items rise as well with inflation?

What items does the $100/month cover?

Hi All,

There has been a lot of discussion on the forums about estimating CapEx. I thought it'd be good for newbies, such as myself, to hear what the seasoned pros are budgeting for CapEx. I'll go first.

SFH: $975/m rent, $200/m budget for CapEx (30-year hold)