CalculateRealEstateROI

Operations

CapEx Management

Forecasting, reserving, and scheduling major systems replacement to avoid surprise expenses.

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

Core concepts

Asset register

Track major systems (roof, HVAC, water heater) with install date and remaining life.

Reserve discipline

5–10% of gross rent monthly into dedicated capex account.

Bundling efficiency

Sequence multiple capex events to capture vendor and downtime efficiency.

Examples

  • Roof, HVAC, and exterior paint bundled for 30-day project saving 15% vs sequential.

Practical applications

  • Buy-and-hold operators.

Common mistakes

  • Confusing R&M with capex.
  • Underfunding reserves.