Checklist
CapEx 5-Year Forecast Checklist
Map the big-ticket replacements coming to your first rental — roof, HVAC, water heater, flooring, paint, appliances — so a five-year capital plan replaces nasty surprises with funded reserves.
- Record the age of the roof Note the install year and material. A roof near the end of its life is your largest and most predictable expense.
- Record the age and type of the HVAC system Furnace, heat pump, or AC condenser — write down each one's age, since they rarely fail on the same schedule.
- Note the water heater's age and capacity These typically last about a decade. An old tank is a flood waiting to happen, so plan its replacement early.
- Document the flooring type and condition in each room Carpet wears out faster than tile or vinyl plank. Note which rooms will need new floors and roughly when.
- Log the last interior and exterior paint dates Exterior paint protects the structure; interior paint refreshes between tenants. Both are recurring capital costs.
- Inventory every major appliance and its age Fridge, stove, dishwasher, washer, and dryer each have a lifespan. List them so none surprises you at once.
- Check the windows, siding, and exterior envelope Failing windows and tired siding drive up bills and tenant complaints. Note their condition for the timeline.
- Inspect the driveway, walkways, and fencing Cracked concrete and leaning fences are easy to ignore until they become a liability or a turnoff to renters.
- Assess plumbing and electrical for aging components Old supply lines and outdated panels can force a large unplanned outlay. Flag anything near end of life.
- Estimate a replacement cost for each item Get a rough local price per system so your forecast uses real dollars, not guesses.
- Estimate remaining useful life for each item Subtract current age from typical lifespan to see which replacements land inside your five-year window.
- Place each replacement on a year-by-year timeline Spread the big hits across the five years so two major systems do not blindside you in the same month.
- Convert the timeline into a monthly reserve target Divide the total coming cost by the months until you need it, then set that aside every month.
- Build the forecast in a tool and revisit it yearly Use the capex forecast tool, then update ages and prices each year as you complete work.
Capital expenses are the slow, certain costs of owning a rental — the roof, the furnace, the water heater — that arrive on their own schedule whether your bank account is ready or not. Beginners who budget only for the mortgage get ambushed by these every time. This checklist has you inventory the big-ticket systems, note their age, and lay them on a five-year timeline so each replacement becomes a funded line item instead of a panic. Do this once and a few thousand dollars of reserves will feel like planning rather than bad luck.