CalculateRealEstateROI

Cash Flow

How much should I reserve for capex?

5–10% of gross rent monthly, or $250–400/door/year for SFR.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

5–10% of gross rent monthly, or $250–400/door/year for SFR.

Expanded explanation

Older properties need higher reserves. Track major systems (roof, HVAC, water heater) and estimate replacement timeline. Don't confuse capex with R&M.

Examples

  • $1,500 rent × 8% = $120/mo capex reserve = $1,440/yr.

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