It will have an ARV of $55k.While i see a lot of people frown upon condos, they do limit for capital expenditures As if you do your due diligence you can greatly reduce any capex or costs which are surprises

With recent IRS changes, repairs vs maintenance vs capital expenditures can make a difference.  

Hello BP!  Do I include cap ex or reserve when calculating NOI?

You also notice that students don't typically have to account for the expenditures related to that money either.So I don't think (if there's no accountability) that's it's a big deal if students use it to invest.Better property then alcohol.

I know a lot more than the average beginner, but still need to better understand how to calculate and consider things like cap rates, capital expenditures, vacancy rates etc... to make sure my opportunity and plan are viable. 

Therefore my expenditures going in are pretty low at $5000. 

Once you own a lot of property paying cashflow, you'll also own all the capital expenditures that come with it.

While published sometime in the mid 1990's the numbers in the book may no longer be relevant, without adjusting for inflation, the precepts in this book literally helped me to see what changes I needed to make if I wanted to become a HNW individual.I studied, read, and re-read this book so many times there was a point in time me I would actually see the day deference in money choices laying out before me in advance of making investment/expenditure choices.

Sticking to these numbers means I can absorb abhorrent vacancies, or major capital expenditures amortized, without any negative cash flow situations.

To prospect and find sellers requires the expenditure of both time and money.