Figure in CapEx! Very important. ( see example)

[Bob Romano]

Found out first hand how important this is .....I bought a SFH about 7 months ago. Found a great tenant , getting top dollar for rent and I am clearing $500 positive cash flow each month. All was going great until tenant called 2 days age and said her discharge hose from the washer machine was backing up from the drain behind machine. Had a drain company come out to assess it and low and behold, I had a root obstruction and broken pipe in the underground about 25 ft from the foundation! It was so clogged, the opening was the size of a quarter! Final bill to run a new sewer line from the house to the street, $5,500.00!!!!

Like I said , always figure in Cap Ex for this one reason!

[Ryan Mullin]

If something can go wrong...   it will!  

Sewer and water lines are THE HARDEST problems to identify before during or after purchasing.  Even normal inspections don't uncover these issues. 

You are right @Bob Romano Cap ex is extremely important to consider.  And not just putting it in your spreadsheet as a monthly expense, but rather having that 5,500 bucks in actual reserves for these types of problems.  

5,500 isn't a bad price either.  It can be 8k or 10k in certain situations.