Setting aside cash for capex

[Stephen Brown]

Hey BP quick question,

When setting aside money for capital expenditures, how much would you vary based on age of certain expenditures? For example, a house that needs a roof in 10 years vs. 5 years and HVAC in 8 years vs. 2 years.

I'm just throwing numbers out there but would I do something like this?

$75/mth roof, $50 hvac/mth

vs.

$50/mth roof, $25 hvac/mth

Thanks for the help!

[Matthew Irish-Jones]

@Stephen Brown if you need to put a $20,000 roof on in 5 years that's $4,000 per year. So take your CapEx as a % of rent and adjust it until it hits the $4,000 per year mark.

If you need to add HVAC and other issues do the same thing.  Add them all up and adjust until you hit your total Capital outlay per year needed.