CAPEX vs. Repairs - I don't understand the difference

[Justin Conroy]

Hi there! I am on my second read through of Brandon Turner's book - "The Book on Rental Property Investing" and as a result, I am taking a deeper dive into the topics.

One thing that I don't understand right now is the difference between repair expenses and CAPEX expenses. The table in the book in the section talking about CAPEX lists things like water heaters, appliances, windows, paint, etc. How is this different from repairs?

[Jaysen Medhurst]

@Justin Conroy, one easy way to think about it is what "breaks" vs. what "wears out." A door knob breaks, the roof wears out. This isn't a perfect description, but hopefully a good rule of thumb.