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CapEx Appreciation Rate

Annual growth rate for capital expenditure reserves.

Example Result

Sample Data
3.00%

Based 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)
User Input (percentage)
3.00%

Platform Distribution

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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

Sample Result
3.00%

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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