How can i calculate Capex for a single family home?

Question

if my rent is 1,234 per month

and I pay  900 per month ( Mortgage,interest, taxes,insurance,repairs,property manager, vacancy, HOA)

it means my Capex is 72.93

is my calculation correct?

Do i include all these expenses? what expenses dont i include?

Mortgage

interest

taxes

insurance

repairs

property manager

vacancy

HOA

Frank Geiger · Answer

The best way I have found to calculate CAPEX is to backwards plan. If you know a roof lasts 25 years and costs 5k to replace. Then that particular item will require $17 a month on your CAPEX budget. A little over simplistic but you get the idea.

Scott Passman · Answer

Account Closed mentioned then it's a good place to start.

Rogers Smith · Answer

Account Closed pointed out.

Scott Passman · Answer

Account Closed I'm a little confused on how you came up with 72.93 for your cap ex based on the information you provided.  In regards to your question, I would include all of the items you mentioned in your expenses.  You list "repairs" but not capex.  Unsure if you lump it all together, but make sure you account for daily repairs for small items as well as capex for larger items such as roof, HVAC, etc.  If you will be paying utilities then make sure to include that. Also, pay close attention to property taxes as they may increase when you purchase a property depending on where you live.  If it isn't owner occupied, then depending on the state there are different exemptions you may not qualify for and thus see an increase in property taxes which would be good to factor into your numbers.

There are lost of variations depending on whether you are looking at SFR or multi-family, what state, etc.  However, what you listed and these additional items is the bulk of what to account for.

Jason D. · Answer

@Jack Edward Johnson the calculation in use is that I take the usable life left of the roof,HVAC, and water heater, and divide the number of months by the replacement cost. Then I add a buffer in to cover siding, sidewalks, etc.... usually comes to about $70/month if I've replaced those items during rehab, but more if I have left existing in place

Rogers Smith · Answer

Sorry, I meant "as @Jason D. pointed out". Too early in the morning.

How can i calculate Capex for a single family home?

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