Sinking Funds & CapEx Planning

You cannot use cash flow to pay for a new roof. It will wipe out years of returns. You must use a sinking fund.

A sinking fund is a separate account where a portion of the monthly rent is deposited, earmarked specifically for capital expenditures. Use our CapEx Amortization Tool to calculate exactly what this monthly deduction should be.

Subtract this figure from your Net Yield to understand your true return.