Real Estate Deal Analysis & Advice
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated about 6 years ago,
Capital Expenditure Forecasting
I am purchasing my first rental property in Memphis, TN (Bartlett area) and am trying to come up with the numbers for that area for capex that I should be setting aside after a rehab (assuming all the items are new, will need to tailor for the specific property I find). I have the Book on Rental Property Investing and they have a table in there:
Item - Cost - Lifetime
Roof - $5k - 25 yrs
Water Heater - $600 - 10 yrs
Appliances - $1k - 10 yrs
Driveway - $5k - 50 yrs
HVAC - $3k - 20 yrs
Plumbing - $3k - 30 yrs
Windows - $5k - 50 yrs
Paint - $2.5k - 5 yrs
Cabinets/Counters - $3k - 20 yrs
Structure - $10k - 50yrs
Garage door - $1k - 10 yrs
Landscaping - $1k - 10 yrs
Total: $183/month
Does anyone have any practical experience with coming up with capex numbers, or have recommendations for how to estimate these? I do plan to buy/hold, but I theoretically could not worry about the 50/30/20 yr lifespan items if I think I'd be trading up properties after 15 years. Thoughts?