A percentage for maintenance/capex is stupid and inaccurate. you put a flat $75/month for what reason? 

Less risky, because it's still a roof over your head and you can see what performs the best.Good luck with everything!

the challenges with flips  is that there are so many angles to try and cover / consider that it is somewhat like spokes on a wheel… even if you just take it system by system… roof, plumbing, AC, foundation, subfloors, electrical, appliances, septic, materials expenses, holding costs, taxes, etc.  

Additionally, if their capex budget was only forecast for 5 yr hold, and they are now anticipating 10 yrs, they may be seeing roofs, exterior repaints, other exterior repairs (stairways, railings, parking lots) that they assumed they wouldn't need to address, but now need to.Things to look for: positive DSCR TODAY, not on pro forma numbers.  

The major factors like the roof, furnace, plumbing, electrical upgrades, and foundation repairs are all examples of costly expenses you'll want to inspect before closing the deal.

Reno has geographic constraints to building that is squeezing supply driving the appreciation vs Vegas where there is still room to build on flat land.  

Some common items to note: roof, electrical and plumbing, window updates.

So the house wound up needing the drywall, kitchen, bathroom, roof to the garage, Plumbing, Gas and other stuff done. 

So then the house is 10% owned by The Person, and 90% owned by The LLC (income and expenses shared accordingly).Now this year say I want to take the same percentage (10%) - and say it's a flat market and the house is still appraised at $500,000.  

I like to use a flat amount compared to a percentage since rents can vary depending where the property is located.