What is replacement reserves?
Amounts set aside for future capital replacements (roofs, HVAC, flooring). Excluded from NOI in a strict presentation, but lenders and investors may deduct them for cash flow after reserves.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.