Capital expenditures expenses best method?

[Carl Fordyce]

What is the best way to deal with Cap Ex monthly expenses?  Here's two methods that I was considering when I'm calculating my cap ex cost and  wanted some feedback as to what is the best method.   

Option 1: Build the Cap Ex expense into the monthly expenses of the property for the lifetime of the property as long as I own it.

Option 2:  once I reached a certain amount in capital expenditure reserves then  set that money aside and don't use it until its needed and then once I have that reserve of Cap Ex money set aside  I could then I could roll in my previous monthly cap ex expense into monthly cash flow to increase it even more.

 What would you guys suggest is the best option for dealing with Monthly Cap Ex cost is it anyone of these two  options mentioned above or something totally different?