Those capital expenditures are SIGNIFICANT at this scale.  

Your mechanicals and capital expenditures are a lot more important and more expensive to fix than a pretty kitchen. its better to live in outdated kitchen and have a well kept home with updated mechanicals/roof/hvac than one that looks pretty but will start to crumble5.

After moving out, I’d still be out of pocket $750 to $1,500 a month to cover vacancy, capital expenditures, maintenance, and property management.

Additionally, we do not have the capital expenditure (CapEx) budget required to make the comprehensive repairs necessary to stabilize this asset fully.Several factors have contributed to this situation:Property Management Issues: We previously worked with two underperforming property managers who made several critical mistakes.

The new investment earns $24,000 a year, but the mortgage + the equity loan cost will be $22,332—and that’s before you account for taxes, insurance, maintenance, capital expenditures, vacancies, etc.

Specifically, if forced to sell now it would be a total loss of capital for both Class A and Class B.Replacing Rate Caps: Our rate cap is expiring this year, and the projected replacement cost is $736k.Resuming Renovations: Given rising inflation and labor costs, our capital expenditure exceeded initial underwriting.

I’m moving out of the house soon and will be living rent-free with my wife at my parents' place in the Bay Area due to some recent life changes.Here’s a breakdown of my situation:Location: Sacramento, CA (4 bed, 2 bath, recently renovated)Current mortgage payment: $3,940/month (including escrow)Mortgage balance: $475,000Current home value: $515,000 - $535,000 (based on comps)Rental estimate: Property management companies are quoting $2,600/month (with fridge/washer/dryer included), but some websites suggest it could go for up to $3,000/month.Planned budget:$540/month for capital expenditures and maintenance$100/month for lawn careTenant to cover utilities (gas, electricity, water)7.5% vacancy rateWe bought the house thinking it would be our forever home, but with our current situation, I’m trying to figure out the best long-term plan.

It's not really a new person thing IMO, but something that requires less capital expenditure.

Whatever you think is a deal is going to look like it's good cash flow and have huge capital expenditures.

These are expenses incurred before your business is active, and they typically aren’t immediately deductible in full, as they are considered part of starting the business rather than ongoing operational costs.To provide more detail, according to IRS rules (as seen in the screenshot), you can deduct the lesser of $5,000 or your total startup expenditures.