CapEx Reserve Guide
What is CapEx?
Capital Expenditures (CapEx) are major repairs or replacements that extend the life of your property. Unlike regular maintenance, these are large, infrequent expenses.
Why Reserve Monthly?
A $10,000 roof replacement in 10 years = $83/month reserved now. Without reserves, you'll scramble for cash when the roof fails.
Typical Lifespans
- Roof (asphalt): 20-25 years | $8,000-15,000
- HVAC system: 15-20 years | $5,000-10,000
- Water heater: 10-15 years | $1,000-2,000
- Appliances: 10-15 years | $2,000-5,000
- Flooring: 10-20 years | $3,000-8,000
- Interior paint: 5-7 years | $2,000-4,000
- Exterior (siding): 20-30 years | $10,000-20,000
- Windows: 20-30 years | $5,000-15,000
- Electrical panel: 25-40 years | $1,500-3,000
- Plumbing: 40-50 years | $5,000-15,000
The 5-10% Rule
Many investors use 5-10% of rent as a quick CapEx estimate. This calculator helps you verify if that's enough for YOUR property.
Older Properties Need More
A 1960s home with original systems needs higher reserves than a 2015 build. Age matters - that's why we ask current age for each component.