← Valtrics Real Estate · Decisions · Engine 04 · CapEx & Value-Add

CapEx & Value-Add

Size the rehab budget and test whether it earns its keep. This engine builds the line-item hard-and-soft cost budget, segregates qualifying spend, and screens the renovation against the as-is yield with a Year-1 velocity driver.

Awaiting inputs Enter the basis and renovation program below The budget builds from rentable area and units; the accretion screen needs a rent premium and an as-is stabilised NOI.

Result Key Numbers

Total CapEx

—

Hard + soft & fees

Per Unit

—

Budget / unit

% of Price

—

Capex vs purchase

Return on Reno

—

Incr. NOI / budget

Year-1 Net Impact

—

Premium less drag

Step 1 Basis

Rentable area and unit count drive the $/SF line-item build and the per-unit rollups. Purchase price scales the budget as a share of the deal.

Project name
Rentable area (NRA)	SF
Total units
Purchase price	$

Step 2 Hard-Cost Line Items

Each line applies $/SF to rentable area unless you enter a total, which wins. Tick "Qualifies" for spend that counts toward a rehab tax credit (QRE). Defaults reflect a light-to-moderate multifamily refresh; edit any line.

Line item	$ / SF	Or enter total	Qualifies?
Subtotal - hard cost	—	—

Step 3 Soft Costs, Contingency & Fees

Soft costs (A&E, permits)	% of hard
Construction management fee	% of hard
Contingency	% of hard + soft
Developer fee	% of hard + soft + cont.
Subtotal - soft cost & fees		—

Step 4 Budget Summary

Total CapEx budget	—
Total / unit	—
Total / SF	—
As % of purchase price	—
Qualifying rehab expenditure (QRE)	—
Qualifying share of budget	—

Step 5 Renovation Program & Accretion Screen

The value-add case: how many units turn, at what cost, for what monthly rent premium. Enter the as-is stabilised NOI to score the return on renovation cost against the going-in yield.

Units to renovate
Renovation cost / unit	$ hard+soft
Renovation contingency	%
Rent premium / renovated unit	$ / month
Units renovated per year
Downtime per unit	months
Avg market rent / unit	$ / month
As-is stabilised NOI	annual $

Step 6 Renovation Schedule

Year	Units	Cumulative	Capex spend	Rent premium	Downtime loss	Net incr. NOI
Enter a renovation program to see the schedule.

Total renovation budget	—
Year-1 downtime vacancy loss	—
Year-1 rent premium captured	—
Year-1 net incremental NOI	—
Stabilised incremental NOI	—
Return on renovation cost	—
As-is yield on cost	—

Once the budget is set, carry it into Debt Sizing → or see the full picture on the Deal Dashboard →

Cost conventions reflect a typical multifamily rehab; figures are decision support, not a construction estimate. Confirm scope and pricing with your GC.