Cap Ex

[Brilliant Clayton]

Newbie Question Wouldn't obtaining insurance (comprehensive home owners insurance) on a rental property take the place of cap ex? Looking forward to the responses

[Lynn Montang]

If you search CapEx on this website, as I did a few months ago, you will find a general guideline spreadsheet. There exists a basic spreadsheet that can give you a good idea of life expectancy and cost for items such as water heater, roof, carpet, paint, refrigerator, etc. I modified and expanded it to meet my needs for each of my properties and I now have a monthly automatic withdrawal go into savings every month so I can build my reserves to pay for expensive things that need to be replaced/upgraded. It would be awesome if I could just spend the money. But that wouldn't be very savvy or smart.