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Updated about 6 years ago,

User Stats

29
Posts
5
Votes
Fletcher Caulk
  • Real Estate Investor
  • Fairfax, VA
5
Votes |
29
Posts

Capital Expenditure Forecasting

Fletcher Caulk
  • Real Estate Investor
  • Fairfax, VA
Posted

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?

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