A capital expenditure is money spent by a business or organization on acquiring or maintaining fixed assets, such as land, buildings, and equipment.

Similar to the allowances in a pro forma, they are simply set asides and only become expenses when the property taxes/insurance are actually paid from them. 2) Capital Expenditures - They certainly feel like expenses, but certain improvements cannot be expensed outright but instead have to be capitalized and expensed/depreciated over time.  3) Depreciation - Finally some good news! 

Your mechanicals and capital expenditures are a lot more important and more expensive to fix than a pretty kitchen. its better to live in outdated kitchen and have a well kept home with updated mechanicals/roof/hvac than one that looks pretty but will start to crumble5.

My question is, are add-ons considered capital expenditures, making them deductible?  

., laundry facilities, pet fees).Fixed Expenses: Include mortgage payments, property taxes, insurance, and property management fees.Variable Expenses: Include repairs, maintenance, utilities, and any unexpected costs.Capital Expenditures: Set aside a portion for future big-ticket items (e.g., roof replacement, appliance upgrades) as a reserve.3.

Or are you looking to track expenditures for bookkeeping reasons?

Then it would help if you still had more to set aside for future vacancies and capital expenditures.

If the rent covered those three and PITI (or other expenditures like Management), and gives you a profit/return you're okay with, done deal.

(WSFA) - The numbers are in and Montgomery is seeing major growth when it comes to tourism with travel expenditures near $1 billion.BiggerPockets also did an analysis with similar results.

It is the gross income minus major capital expenditures. i.e.