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?