So many single-family homes or so many apartments in apartment buildings equals net operating income for each minus capital expenditures for each equals free cash flow).

The property is located in Manchester, NH and crunching the numbers yielded an 8 cap after factoring in vacancy at 5% (though the average across the state runs at less than 2%, and in properties we manage at 3%), 5% for repairs & maintenance, 5% for future capital expenditures, and 10% for hiring a property management firm.  

What are the most cost effective capital expenditures that you have done to increase rent? 

Is the cash flow high only because it's not counting an inevitable large Capital expenditure ~3 years from now. and cash flow is ALWAYS: gross - expense = NOI - debt service = CASH FLOW.

Much of your "expenses" for the flipping business may be expenditures that need to be capitalized and included in the basis of your property.  

Probably want to hold back around $400-$500 per year above the NOI to account for capital expenditures down the road.  

While we don't have (yet) the burial sites, we have a unique collection of 60's hippies that (still) love communism, and hate tech, progress (no idea why they are called "progressive") and success (especially landlord and real estate success roils their blood :)  Add to that an extremely incompetent Bored of Stupidvisors which has a nack for passing local rent control legislation that gets ruled unconstitutional in superior court.

My question is:Do I have to treat the amount put towards the initial escrow balance as a personal expenditure once taxes and insurance are paid?

All but a few of my expenditures are deemed completely necessary for everyday life but I can still come up short if me or my wife miss much work.

Our cash flow after accounting for all expenditures is $450 per month.