One Thing Investors Miss on Math is Renovation Costs and Capbacks

One thing I see investors miss in their math is the actual renovation cost and capex it takes to run a larger apartment building. If you miss this on your math, it's going to destroy your numbers. Here's a good example. When we did this, not everyone thinks of the major road repairs that you may have. This is one section of quite a few that we're going to be doing exactly like this. To redo a ton of parking lot costs tens of thousands of dollars. I've seen many deals where it actually costs hundreds of thousands. The bank allocated on this $8 $100,000. Now, if I had just trusted their numbers, I would have ended up with a budget shortfall of tens of thousands of dollars. Now, this is a multi-million dollar transaction. That's not the end of the world. But if you do that on enough things, you don't factor for replacing ACs, the occasional roof. This campus itself is made out of fourplexes. There's 76 units here. There's a lot of roofs. If you don't allocate correctly, you said, oh, what's an average 76 cost? Well, your roof cost is a lot higher when you have a ton of roofs because divided into townhome style apartments, the little things you have to go do the math on don't You just AI this, which is what I see almost every investor do, and that's why people don't cash flow, is they don't negotiate the deals right from the start.