I mean do you budget for that when evaluating NOI/cap rate? If so what area of expenses do you apply the possible 1-4k cost to fix a previously owned home they walked from?
For example, under:
Property tax
Management
General park maintenance
Do you factor abandoned home repairs under a general park maintenance?
Buying a community is often very competitive so people often offer more than makes sense just to get the community.
But, yes, I would try to enter those numbers into my calculations and my negotiations. I would certainly want and need them to set up my pro forma if I was successful in buying the community.
Actually the tax man would consider putting that home in the photo in shape to be a capital expenditure. But if it just needed a little fix’n here and there, it could be rightly be added to the repair line on the P&L.
Where exactly where is the line drawn between capital expenditure and repairs & maintenance? It isn’t, exactly a line but gray zone.