Real Estate Investing with Coach Carson #474: Unexpected CapEx RUINS Cash Flow (How to Avoid It)
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Feb 9, 2026 Koston (Costin) Yorgulescu, a 15-year investor who builds systems and a CapEx planning spreadsheet for landlords. He explains what CapEx is and why owners underestimate it. He shows building detailed inventories, forecasting replacement timing and costs, and using dynamic budgeting to avoid surprise big expenses.
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Three Heaters Failed At Once
- Chad recounts three hot water heaters failing at once in one fourplex, illustrating clustered failures.
- He warns single large repairs can wipe out perceived monthly cashflow if not planned for.
Percent Rules Hide Timing Risk
- A flat percentage rule (e.g., 3–5%) often misrepresents true CapEx timing and scale.
- Percentage methods hide concentration risk when many items age and fail around the same time.
Budget CapEx And Keep Cash Reserves
- Set a monthly CapEx allocation per property when underwriting deals and include it in operating expenses.
- Keep a cash reserve (Coach used at least three months of all expenses) to cover months with big unexpected CapEx.