#474: Unexpected CapEx RUINS Cash Flow (How to Avoid It)

Real Estate Investing with Coach Carson

Chad Carson

Business, Investing

4.9 • 613 Ratings

🗓️ 9 February 2026

⏱️ 53 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

⭐ Connect w/ Coach, Costin & a community of real estate investors:
https://www.coachcarson.com/rpm-pod-ep474

⚒️ Costin's CapEx Planning Spreadsheet:
https://www.coachcarson.com/cap-ex-planning-pod

📄 Coach's FREE CapEx Cheat Sheet:
https://www.coachcarson.com/cap-ex-cheatsheet-pod

▶️ Next Video → How Much Tax Will You Owe Selling a Rental (Real Numbers Inside)

https://www.youtube.com/watch?v=SgNXl8eqa2U

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EPISODE NOTES:

🎬 Topics Covered:

(00:00) - What is CapEx?
(02:22) - The Financial Impact of CapEx
(04:07) - Real-Life Examples and Common Mistakes
(10:02) - Budgeting and Reserve Funds
(14:31) - Advanced CapEx Planning Techniques
(25:05) - Calculating Replacement Costs
(31:38) - Dynamic Budgeting and Forecasting
(40:02) - Implementing the Spreadsheet
(42:56) - Benefits of a Predictable Business
(47:36) - How Much Tax Will You Owe Selling a Rental?

🎙️ Episode 474 - Hidden CapEx can wipe out years of rental profits. Learn the simple ways to forecast, budget, and protect your cash flow from big, unexpected repairs.

📄 Show Notes:
https://www.coachcarson.com/saferentalincome/

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ADDITIONAL RESOURCES:

💵 Need Investor-Friendly Financing? This is who I trust → https://coachcarson.com/bryan

🏠 TurboTenant – Streamline Your Property Management for Free: https://www.coachcarson.com/turbotenant

📱 DealMachine – Software to help you buy more real estate deals:
https://www.coachcarson.com/dealmachine-pod

Transcript

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0:00.0	A lot of investors think the finish line is simple. You buy enough rental properties,
0:03.7	collect the cash flow, and then you're able to quit your job. But here's the problem.
0:07.4	Most rental cash flow isn't stable enough to replace your paycheck. One roof, one HVAC, one
0:13.3	surprise expense can wipe out months or years of progress. These big expenses are called
0:18.2	capital expenses or CAPEX. And in this episode, I'm breaking down why they make rental income feel so risky.
0:24.6	Plus, I'm going to show how experienced rental investors plan for those big expenses so that they can depend on their rental cash flow and use it for financial freedom.
0:44.0	If we haven't met yet, my name is Chad Carson. You can also call me Coach Carson. And on this channel, I teach you how to use real estate investing to achieve financial freedom so you can spend your time doing more of what matters.
0:50.5	I'm joined in this episode by Koston Jor Golescu. He's a 15-year real estate investor. He's a member of my
0:55.6	rental property mastery community. And he's someone who's done an excellent job of building real
0:59.7	systems and a spreadsheet, as you'll see, around CAPEX planning for small and mighty real estate
1:05.0	investors. So, Kostin, you and I over the years have had a lot of situations where we had capital
1:09.6	expenses, big, huge expenses,
1:11.4	many times multiple in a row expenses. And I want to get into some of those stories. I'm going to talk
1:15.9	about how we both do some planning to deal with that. But I thought it might be good to start.
1:20.6	For those who aren't that familiar with it, can you just talk about what capital expenses are,
1:25.8	how they're different from maintenance? That might be a good place to start. So capital expenses are, how they're different from maintenance.
1:28.0	That might be a good place to start.
1:29.6	So capital expenses are different from repairs and maintenance or incidental repairs.
1:36.7	And I'm not, I think they are described as anything under the one year, in the repair and maintenance category, everything else that has
1:46.1	more than one year lifetime, it's capital expense. There are usually big items. Basically,
1:54.0	you have to, if it's like a replacement, I think it falls into the capital expense, roof,
2:00.5	HVAC system, flooring, painting, that kind of stuff.
	...

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