Capital expenditures play a crucial role in property analysis as they represent the funds used by a property for major improvements and renovations. These expenditures are essential for maintaining the property's value and increasing its potential for generating income. They are considered in the proforma analysis, where the potential owner projects the income, expenses, capital expenditures, and debt services for the next 12 months.
Real estate can be a great addition to an investment portfolio. But as with any investment, it has t...
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