Cost of Capex items in midwest?

[Vinay M.]

Hi everybody

I am new to real estate and am thinking of purchasing turnkey homes out of state.

Specifically, I live in NY and want to buy in KCMO and Indy.

I have been evaluating several TK houses in the $50k to $60k range and the net monthly cashflow is coming out in the $200 to $250 range. For this I am assuming 20% downpmt, 10% vacancy, 10% repairs and about 8% to 10% prop management.

Anyway, my question is what do you estimate the cost of replacing a roof on a typical $50k home in these cities? What about the cost of replacing the water heater? 

The obvious concern here is the ratio of CapEx to the net cashflow. Is it possible that a roof replacement can wipe out 4 years of cashflow?? If so then I do not see the value of such an investment. It is more like a ticking timebomb (?)