Cash Flow Analysis - CapEx considerations

[Alex Zaboli]

Let's assume $183/month to account for total CapEx useful life. Considering the property and all appliances, etc are brand new, does it make sense to include $183/month for Capex in the operating expenses portion of my cash flow projection? Then, use that monthly cash flow figure to calculate my cash on cash return?

There must be something to be said about this CapEx not truly affecting monthly cash flow. At the end of the day, it's a budget for the entire useful life. So, should I not include $183 as a monthly expense? Should I break down CapEx to the sub-components useful lives and account for costs that way?

Cash flow/month without CapEx budget = $322. Resulting in 9.97% cash on cash return on my 20% down.

Cash flow/month with CapEx budget = $183. Resulting in 4.31% cash on cash return on my 20% down.

Thanks for helping me think through this!

Alex