Hi @Bo McCoyDoes marginally in the black also include a fund for repairs and capital expenditures?

Replacing a roof is a captial expenditure subject to depreciation.

Hello fellow BPers I have a rental property and I am interested in hearing what this group thinks about home warranties versus budgeting for large capital expenditures.

If you have a good idea when you will need the money because you know what your CapEx expenditures should be and when you should incur them then you can accept some risk by investing in a CD or Bond ladder or something while keeping enough on hand for emergencies.

. $3,600 per year for electric/water/sewage (they pay heat/cable)$400 put aside each year for future capital expenditures (should this be higher?)

I replenish it after a major expenditure.

As of now, the only expenditure I know will be the down payment lol.

This is not quite accurate: Cap rate completely excludes renovation costs and capital expenditures, so it cannot tell me my actual return on investment.Cap rate is most helpful when seen as a measure of a submarket, rather than having meaning for a single property.

These are all products and services that a person can chose to purchase or not purchase.Here is where things are screwed up. 50 years ago, 9-10% of government expenditures were on American Infrastructure.

You will never know what the FMV book number is, nor will you ever know any additional expenditures that increased the cost basis such as property repairs, preservation, taxes and insurance, etc.