Help - CapEX Allocation

4 Replies

Hi everyone,

How do you decide how much to allocate for CapEx (Before you going physically to check the asset ) ?

I know that it depends on many variables (age of the house for example) . 

But what is your default number in $$$ ?

Kfir,

I'm a newbie but as far as I can tell, the best way is to make a grid of all the capex expenses for that particular property, track down how much remaining life is on each of them, and divide the cost for each buy its remaining life; then you'll see how much you should set aside each month when you add them all up. 

If you use the BP rental calculator and populate the first few screens, the one where you plug in capex expenses has a link over it. Go to the site it links to and download the Excel grid they have on the article. That'll give you a good starting place to create your own tailored to the specifics of  whatever property you're evaluating.