Definition
Short for capital expenditures—the big-ticket repairs and improvements to a property that extend its useful life, like a new roof or HVAC system. These are the expenses that make landlords weep into their tax returns.
Example Usage
I budgeted $5,000 annually for capex reserves, but the water heater, furnace, and roof all decided to die in the same quarter.
Origin
Standard accounting terminology adopted by real estate investors
Fun Fact
Experienced investors typically reserve 5-10% of rental income for capex, which is why the term is often whispered with the same reverence as 'emergency fund.'
Source: Real estate investment and property management terminology
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