Is CAPEX Really That Important?

[Shaun Martin]

A SIMPLE Guide to Calculating CAPEX

SO MANY INVESTORS CHOOSE TO IGNORE CAPITAL EXPENDITURES BUT I 100% AFFECTS YOUR INVESTMENT RETURN.

There is a clearly defined way to come up with a multiplier you can use across your properties. I am sure it is well documented in Bigger Pockets but I am still repeatedly coming across investors, new and seasoned who leave if out of their calculations. Theirs is not a definitive Guide. Please add more. If nothing else I just want you all to know:100% understand you can not ignore CAPEX!!!You just need to spend a little time understanding how much various items cost such as:

• roof replacement
• hot water heater
• furnace replacement
• ac replacement
• gutter replacement

Among other things. Then take these numbers, and the industry standard for expected life of said items, cost them in against purchase price of property rent etc. and SHAZAAM!!!! you have a number for your CAPEX. It may not be exact but hell - its a million ties better than ignoring it. If you ignore it you will run the chance of failing in you real estate business. Now more than ever with a potential changing of the tides...That said - What do you see happening in the greater real estate cycle over the coming days, weeks, months and year?