CalculateRealEstateROI

Cash Flow

Capital Expenditures (CapEx)

Large, infrequent property expenses extending useful life — roof, HVAC, plumbing, structural.

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

Plain-English explanation

Not operating expenses; they're capital and sit outside NOI. Reserve for them anyway.

Examples

  • Reserve 5-10% of gross rent for capex.
  • Roof replacement: $8-15k; HVAC: $5-8k.

Common mistakes

  • Lumping capex into repairs.
  • Not building a sinking fund.

Related questions