Investing CapEx Budget?

[William S.]

Let's say you set aside $100/m for CapEx items that will need replacing in 10 years.

Current method: Put money in bank account that earns 1%

Idea 1:Invest the money into a bond or dividend stocks

Idea 2: Reinvest the money to help with another down payment on the next property. Have reserve money upfront in the bank that equals two years of CapEx budget. Once year two hits, resume CapEx budget to current method.

CapEx is such a big chunk of the budget and it seems a waste to let it lose money sitting in the bank for many years earning a ridiculous 1% interest.

Does anyone do this?

[Brock Y.]

I agree with @Kevin Siedlecki 

10 years of $100/month = 12,000. It is not like you are going to make tons on that small of an investment with bonds or stocks. Depending on your goals, it is most likely in your best interests to be putting that towards more property or even improvements to the current property to be able to raise rents to cover those capex even faster.