This comes into play from a owner standpoint where there might be some large capital expenditure in the future causing negative cash flow.

Then pay the maintenance fees, renovation and capital expenditure assessments, while the owner of the hotel holds all the equity--dumb at any age.

In total, the TARP expenditures (between banks, other institutions and toxic asset purchases) were just over $600B.Of that $600B, over $425B has already been recouped (repayments, dividends, interest, etc).So, you're numbers are RIDICULOUSLY off, and the idea of giving everyone $10K to fix the economy just doesn't make sense (at least not to me).

And things like repairing a clogged toilet and mowing the lawn are clearly OpEx.Of course, that leaves a whole lot of stuff in the middle: repainting an exterior, putting in hardwoods, installing new carpet, replacing a toilet, etc.In fact, you could argue that if you remodel an entire bathroom, it's CapEx, but if you replace the toilet today, the sink next month, the tub the following month, the flooring the following month, and the lighting the following month, each expenditure is OpEx.So, you can see that determining if something is OpEx or CapEx is not an exact science.As usual, the IRS has chimed in and tried to clarify things, but they haven't done a very good job of it.

Any large capital expenditures can reduce that $164/door but I haven't had any yet that can't be paid by the 10% in repairs that I reserve given enough time to get that reserve collected in rent each month.I have a 7 unit apt building (plus 2 commercial units) that is undergoing casualty repairs due to a fire earlier this year.

By cash reserves, I don't mean just repairs and capital expenditures (big repairs).  

Ask for any capital expenditures performed in the last 2 years, any warranties on appliances or A/C units, ask about any contracts he might have such as landscaping or pest.  

You haven't factored in management, normal repairs, and a capital expenditure fund.

Or the more precise way of doing the math, if you add in vacancy, repairs, and capital expenditures, and property management you will likely be above $900.

There will also be those with large expenditures occurring as well.