How to calculate capex?
3 Replies
Jay Mat
posted 12 months ago
Hi, I would like to hear from you how you calculate capex. Do you actually go and check all the possible expenses? Do you call contractors to find out how much they will charge for a new roof? Same is with the plumbers, electrician etc. or is there an easier way to do this?
Tim Herman
from North Dakota
replied 12 months ago
@Jay Mat the most accurate way is to calculate each house. There is a spreadsheet in the files section called cap ex by @ Sam Tato. I use a minimum of 10% at $1k rents. I want to have at least $250 per month that includes vacancy, repairs and capex going into an account.
Kenneth Garrett
Investor from Palatine, IL
replied 12 months ago
I developed a capex spread sheet based on information from numerous sources and my own experiences. It's based on replacement cost, lifespan of appliances, roofs, windows, electric, plumbing, HVAC, etc., cost per year and cost per month. It's just under $200/month. Read David Greene book on BRRRR. It will help in many ways.
Jay Mat
replied 12 months ago
Thanks for the useful commends!