Oycora methodology
Capital Expenditures and Reserves
An assumption for major replacements or improvements kept separate from recurring operating expenses.
Methodology v1.0Effective 2026-08-23Last reviewed 2026-08-23
How this is calculated
Pre-tax cash flow deducts the modeled CapEx reserve after NOI
CapEx is excluded from NOI and deducted in pre-tax cash flow.
Why it matters
Separating CapEx preserves the meaning of NOI while still reflecting capital planning in cash flow.
What is included
- User-entered or modeled reserve for major replacements
What is excluded
- Routine maintenance included in operating expenses
- Accounting depreciation
Assumptions and limitations
- A reserve is not an inspection, contractor quote, or guarantee of future replacement costs.
Used in Oycora
Related learning
Property Analysis
How Much Should You Set Aside for Rental Property Maintenance and Repairs?
Rental property maintenance costs are uneven, but they should still be planned for. Learn how to build a realistic maintenance budget, separate routine repairs from CapEx, and choose between percentage-based and component-based reserve methods.