Your Financial Pharmacist YFP Real Estate Investing 41: Deep Dive: Repairs and Capital Expenditures
Jan 22, 2022
34:24
Nate Hedrick and David Bright discuss how to determine your repair and capital expense budget for your properties and how these two budget lines can make or break your investment.
Key Points From This Episode
- A reminder to keep repairs and capital expenditures separate when budgeting.
- Defining the two categories and some example issues of each.
- Some different theories and approaches, and the advantages/disadvantages of each.
- Three quick tips to keep in mind when trying to estimate repairs.
- Some examples of what we've done to minimize things that could go wrong.
- How to take into account the age of the property and fixtures.
- Ways to use your sinking fund, plus a reminder to be flexible to include inflation.
- Four market-dependent CapEx points to be intentional about when finding houses.
- The importance of talking to a local expert when evaluating rent prices.
- Some great resources for you, from articles to podcast episodes to a free guide.
Links Mentioned in Today's Episode
- YFP Real Estate Investing 06: Picking (and Switching) Property Managers
- YFP Real Estate Investing 14: Protecting Your Investments
- YFP Real Estate Investing 35: Making Connections Through Local Real Estate Meetups
- Register for a Your Financial Pharmacist Webinar
- How to Estimate Future CapEx Expenses on a Rental Property by Brandon Turner
- YFP Real Estate Investing
- Find an Investor-Friendly Agent
- YFP Real Estate Investing 18: Tax Strategies for Real Estate Investing
- Download The Pharmacist's Guide to Real Estate Investing
- Join the YFP Real Estate Investing Facebook Group
- Your Financial Pharmacist Disclaimer and Disclosures