Real Estate Term

Capital Expenditure (CapEx)

Major property improvements such as roof replacement or HVAC systems.

Reviewed 9 August 2026 by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Explanation

Distinct from routine maintenance. Investors typically reserve 5–10% of rent for capex on stabilized properties.