Deal Metrics
What is CapEx (Capital Expenditures)?
CapEx refers to large, infrequent costs like roofs, HVAC systems, and major replacements.
Answer
CapEx refers to large, infrequent costs like roofs, HVAC systems, and major replacements.
Example: If rent is $2,000/month and you reserve 5% for CapEx, that means setting aside $100/month.
Why this matters: One large repair can wipe out your profit if you are not planning for these costs.
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