CapEx Amortization Tool
Capital Expenditures (CapEx) are major replacements—roofs, HVACs, driveways—that do not occur annually but will eventually fail. Failing to provision for these items artificially inflates your net yield calculations. This tool amortizes the cost of these components over their expected lifespan.
Property Components
Roof
HVAC System
Flooring / Carpet
Appliances / Hot Water
Required Sinking Fund
Total Monthly Reserve
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Deduct this from your monthly cash flow.
Total Annual Reserve
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Integration with Yield
This annualized figure must be subtracted from your Net Operating Income to find your True Cash Flow. Take these numbers back to our Gross to Net Yield Calculator to refine your asset analysis. Managing these reserves is a critical part of professional Property Management.