Vacancy %Maintenance %Capital Expenditures %Management Fees % We are using Brandon’s 7% ,10% ,10% ,10% set up and with those number we are coming up negative cash flow.Just trying to understand if we’re being to heavy on those expenses.Thank you advance for your time and help.

So again, sometimes when I see people talk about a high cap deal, they are not factoring in the fact that they got a low price because of the repairs and capital expenditure they will need now or in the near future.  

I would make sure I had a really good handle on what those capital expenditures may be, though.

Improvements:  ADDING new features or upgrading an existing feature.eg:  Old window may be a single pane casement style (crank to open) and the upgrade may be to a dual or triple pane, eGlass with Argon fill replacement.That's an improvement, a capital expenditure and amortized.

With 80% financing, and normal repair, maintain, vacancy, capitals expenditures, taxes, ins, etc. you'll need about 1% of the purchase price in monthly rent to break even.

I think it is best (especially with the current extremely low interest rates) to try to leverage, but have a nice cash reserve for maintenance, capital expenditures and unforeseen costs (since you are not paying cash you should have more available to you as a cash reserve).It is no fun to have to leverage to the point that if 1 tenant misses a rent payment you can't make your mortgage obligations.So my advice in a nutshell:  mortgage + healthy cash reserve.

Zachary,In answer to your question, yes my partner and I both had the same cash investment but the time expenditure was waaay out of wack.  

(physical therapist) My monthly expenditures are around $5 k ( I was only figuring one mortgage payment) and bring home is $7 k ish.

Put all monthly expenditures on Automatic Electronic Payments etc; Am I trying to TOOT my own horn absolutely NOT   Like you I DON"t want to be re-imbursed for anything .

Estimating cash flows for large capex expenditures is pretty difficult.