For the insurance deductible on the claim, it depends on the nature of the claim: if it’s for a repair, it’s deductible this year; if it’s an improvement, it needs to be capitalized.

We have repaired and not replaced roofs when appropriate. 

But they know they need adequate reserves to sustain them if/when there is a lawsuit or eviction to cover lost rent, repairs, etc.

I am using 5% for repairs, 10% for cap ex, 10% for vacancy, and 10% for property management.  

It might be against the law to repair vehicles or have them in the yard, on the grass, etc.

Biggest key is to make sure you have the right teams in place and boots on the ground to help you manage / inspect / repair the property.

I don't self manage any Indy properties - it was going to too much work screening tenants, showing the property and coordinating repairs from 2000 miles away with a demanding W2 job.

During the pendency and term of this contract, Seller shall not change any existing lease, enter into any new lease or make any substantial alterations or repairs without the consent of the Buyer.

A couple months of vacancy or repairs could put you behind the eight ball.You could always sell the duplex and take the equity and roll it into something bigger.

Purchase price: $274,900 Cash invested: $66,511 Sale price: $400,000 Estimated a lot more on repair cost than actual cost.