Dry wall isn't a big deal but it can get real expensive if you have to start cutting out joists and studs and repairing them.

I also budget for repairs (usually 10% of rent) in addition to the CAPEX reserves. 

Hi All,I am looking for a handy person  to perform maintenance and repair tasks as needed for 1-4 unit properties in the Western suburbs of Philadelphia. 

@Phil Hartten ARV means After repair value.. so after a rehab, what is it worth? 

@Shelly Shanks For buy and hold the formula is relatively simpleAnnually:(Monthly rent x 12)- property taxes - insurance -property management fees - HOA fees if applicable - budgeted maintenance and repairs- expected vacancy - loan payments.This will give you your annual cash flow. 

I keep a detailed spreadsheet of each repair item and the name of the contractor or sub responsible for the repairs. then I use the spreadsheet as a checklist.

Also, I added a "maintenance/repair" category for minor things like fixing a leaking toilet, broken window, etc.

Roofs on all the buildings needed to be repaired, with the largest office building being the first.

I made the repairs, and still told her she had to leave.

Secondly, many condo associations are run poorly and have little in the way of financial reserves, so unexpected repairs, maintenance, or upgrades could translate into surprise special assessments that will gobble up your profits.Flipping off-market properties is a sound strategy, but it requires serious marketing effort.