This money can used by the Landlord to pay their mortgage, set away reserves for structural and roof capital expenditures and most importantly, put money into their pocket.

Let's say I come across a property  in Atlantic City, NJ with good bones (roof, plumbing, windows, electric, etc..), or even Turnkey!

There are some issues that came up with the property inspection and it needs a new roof, new commercial rtus, and repaving the parking lot.

Our approach for implementation is to break all repairs into 4 categories by priority:1) Health & Safety - most important as could result in tenant lawsuit2) Property Preservation & Government Requirements - don't ignore a roof leak that costs hundreds to fix now, but will costs thousands in the future.

I also discovered damage to the roof and had to replace that, plus I graded and graveled the driveway and parking area. $24,000 worth of improvements, $20,000 in lost rent. 

Buy something where the rent coming into you is more than the cost of owning it, which will include taxes and insurance, and downtime between renters while the unit is turned, and sometimes roof replacement, etc...

I am going to be doing an extensive renovation, biggest thing is dorming out the roof to increase the size of the bedrooms.

The major things we deal with currently in non-snow rentals are just hvac, roof, foundation.Thanks!

Old roofs, old boilers, driveways, huge cap ex expenses that need to get taken care of.Read the Psychology of Money by Morgan House.

Of course, if you can buy at a steep discount, get favorable interest rates and put a lot more down, you can make almost anything cash flow.