We understand the importance of budgeting for CAPEX and have conservative estimates in our budget. 

Can’t play the game without understanding the rules.

Thank you, @Michael Norris I certainly understand the importance of renters having their own insurance.

@Aaron Misiph if you have an understanding of Real Estate Investing and just need more knowledge on estimating repairs/rehabs, I would strongly recommend reading @J Scott book on estimating rehab costs.

My 9 to 5 job is sales and I have grown increasingly frustrated with the prospect that I am making millions of dollars for somebody else when I could be putting the same effort into my own business thus,  have recently decided to go all in with real estate investing.I have a decent understanding of the process but I am stuck in the analysis phase of how to generate leads for a few hundred to a thousand dollars. 

If it were issues caused by my overlooking something or the people hired overlooking something, I could understand. 

Starting to understand these multi units a little better.

What I'm trying to understand is how the expenses and property taxes for the 6 years get factored into the distribution amount.

I understand there is a mechanism that allows a child to buy a home from their parents and retain the original real estate tax basis under California Prop 58. 

It doesn't matter whether the deals are good deals or not, you are just building the skills of understanding what to look for and what parameters you can mentally set in your head.