Deferred maintenance is debt that does not appear on the balance sheet. Paint and flooring are easy to price; sewer lines, supply plumbing, electrical capacity, roofs, foundations, balconies, and drainage create larger obligations.
Classify work as immediate health and safety, near-term preservation, recurring replacement, or optional renovation. Obtain contractor scopes and include permits, design, resident disruption, and contingency.
Repairs can take units offline, interrupt utilities, increase insurance scrutiny, and consume management time. Model lost rent and temporary accommodations as part of the project cost.
Do not fund old problems with optimistic rent growth. Subtract credible capital needs from value and maintain reserves after closing. A cheap price per unit is not a discount when the building needs a second acquisition budget.
Draymoor Ventures looks for durable real estate where current operations support the basis and growth remains upside. Share an opportunity: Steven@DraymoorVentures.com.