CapEx Appreciation Rate
Annual growth rate for capital expenditure reserves.
Example Result
Sample DataBased on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
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CapEx Appreciation Rate Formula
User Input (percentage)
Why It Matters
Failing to account for CapEx inflation is a common mistake. A roof that costs $8,000 today might cost $10,700 in 10 years at 3% annual growth. Modeling this ensures your reserves keep pace with actual future replacement costs.
Detailed Explanation
The CapEx Appreciation Rate models how capital expenditure costs increase over time. Building materials, labor, and contractor costs tend to rise with inflation, meaning future roof replacements, HVAC installs, and other major repairs will cost more than today.
Example
Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
Related Calculations
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Projected NOI (Year 1-5)
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Cumulative Cash Flow Year 5
VTotal cash flow collected over the first 5 years.
Months Until Cash Flow Positive
WNumber of months before the property generates positive monthly cash flow.
Cash Flow Growth Rate
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Break-Even Occupancy Rate
VMinimum occupancy rate needed to cover all expenses and debt service.
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