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Deferred Maintenance Calculator

A property with deferred maintenance transfers the capex catchup to the next owner. This calculator totals the hard costs by system and converts them into a defensible price concession to request from the seller.

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~1.4× for distressed buyers

Total repair cost

$30,100

hard costs to catch up

Price discount to request

$42,140

repair × multiplier

Target offer price

$242,860

Discount vs list

14.79%

How the math works

Deferred maintenance is the capex a prior owner skipped — new roof, new systems, cosmetics — and it should drive the offer, not be priced in as sweat equity. Investors typically ask for 1.3× to 1.5× the repair cost as the price concession because holding costs, risk, and surprise overruns eat the difference.

Sellers often push back because they don't see the repair list the buyer does. Document each item with an inspection report and a written contractor quote to take the decision off opinion and onto actual numbers.

How to Use

  1. Enter estimated cost for each major system: roof, HVAC, plumbing, electrical, cosmetics, and other.
  2. Use written contractor quotes where available — sellers ignore opinion but respond to documented numbers.
  3. Enter the list price to see the discount percentage and target offer.
  4. Adjust the multiplier. 1.3–1.5× repair cost is typical; lower on a turnkey market, higher on distressed.

Frequently Asked Questions

Why 1.4× the repair cost instead of 1×?

Repair quotes usually miss scope that surfaces during the work. Additionally, the buyer is carrying holding costs and taking on execution risk that the seller avoided. 1.3–1.5× compensates for both and is a common investor multiplier.

What's the difference between deferred maintenance and rehab?

Deferred maintenance brings the property back to functional condition (working systems, weather-tight envelope). Rehab adds value (kitchen upgrade, layout change, addition). A BRRRR project usually covers both.

Should I use contractor quotes or cost-per-square-foot estimates?

Contractor quotes for anything over $3,000. Cost-per-square-foot benchmarks work for quick screening but vary ±40% by region and contractor. Always get quotes before firm offer.

What if the seller refuses a discount?

Walk away or adjust offer to match. Deferred maintenance doesn't magically become worth less just because the seller priced it in. Move to the next property if the seller won't meet the numbers.

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