Keep four buckets separate
Our budgeting model separates recurring operating expense, immediate capital work, future capital reserves and unresolved risk. The values in the interactive model are illustrative; they are not contractor estimates for a named property.
A $100,000 one-time repair should not automatically be treated as a permanent $100,000 annual NOI reduction. Conversely, recurring testing or operator expense should not disappear into a one-time reserve. Model each item where it belongs.
Commission the question you need answered
For a physical inspection, write a narrow scope: current performance, observed condition, sludge measurement when appropriate, access, records reviewed, limitations and recommended next investigation. Sewer scoping should identify line material, breaks, bellies and material root intrusion with a location reference.
A limited inspection cannot certify every concealed component. Record what was not inspected. Obtain site-specific written estimates before relying on a reserve or negotiation adjustment.
