CapEx and Vacancies can cover each other?

[Boruch Vann]

I had a wonderful conversation with Linda Labbe from here on BiggerPockets. She explained how they manage CapEx risk together with vacancy risk to cancel each other out, by selling off the bottom 20% performing properties in their portfolio each year and use the funds to purchase properties with better prospects. By constantly pruning off the bottom performers, they minimize vacancies, and by turning over all their properties every five years, they avoid most major Capital Expenditures. This sounds like a home run, and I'd love to get some feedback from people who have been both successful and unsuccessful with this strategy!