CAPEX or Replacement Reserve on MBs calculator ??

[Mauricio Ramos]

Hello BP Family!

Kind of running in circles on this dilemma and would love to get your opinion on this.

When using @Michael Blank 's calculator (which is a state of the art weapon) i see the "deposit to replacement reserve" line item in the EXPENSES box, but there is no CAPEX line item. So if you use this line item as your capex, this would lower your NOI, hence your property value goes down. So i would typically add an extra line after debt service to account for CAPEX without affecting my NOI.

I have heard some of the other big guys in MF to never account your CAPEX as your expense.

What is your opinion on this? How do you account for CAPEX using this calculator?

Thank you!

Mauricio