And yes, to be through and consistent, it is my opinion that a small multi in a D location is going to have more R&M than just about every other residential asset there is.CapEx: Capital Expenditures are big ticket items that degrade over time (roof, heating systems, etc).

@Winn Merwin not 100% sure but the windows would almost definitely be considered a capital expenditure meaning you could depreciate them.

Would you include capital expenditures in that?

Items to consider:Yard maintenance - I normally have a clause in my lease that the tenant is responsible for yard maintenance on their respective plots.Water/sewer cost - Identify who is responsible and add/remove expense as needed.Owner occupied route - add in PMI (0.85% of loan amount per year if under 90% LTV) if paying less than 20% down and adjust interest rate as needed.Near Future capital expenditures - have inspections been performed?

That's a double win for her because she likes the income but hates the expenditures. 

Thankfully there were no mechanical capital expenditures such as HVAC or water heater.

@Chris Allen, if you want to be thorough, make sure to account for the following expenses:1) Mortgage2) Mortgage insurance (PMI or MIP) or FHA Risk base3) Property Taxes4) City Taxes5) HOA (Home Owner’s Association) Dues and Fees and Assessments6) Insurance  a) Property Hazard Insurance (0.3-0.45%)  b) Flood Insurance  c) Earthquake Insurance  d) Umbrella Insurance7) Vacancy Rate (usually 8% - the equivalent to one month a year, or 5-6% if multifamily and/or if experienced, if not use 8%)8) Utilities (you’ll have these if your tenant is not covering them and/or during vacancy)  a) Water § Sewer § Garbage  b) Electricity  c) Natural Gas  d) Propane9) General Maintenance (usually 5%)  a) Upkeep § Landscaping  b) Snow removal  c) Repairs  d) New Appliances  e) Make ready10) Capital Expenditures (usually 5%, higher is the property is old and obsolete, less if fully rehabbed and all mechanicals and roof are new)11) Property Management (8%, even if you self manage, your time still has value and there might be a time when you'll want to be completely hands off or you'll not be able to do it, vacation, retirement, etc.), including...  

The flip side to that of course is that you don't have much cushion between you and a big capital expenditure, vacancy, or maintenance issue, which means you'll be pulling cash out of your own pocket if something comes up.

That's our first capital expenditure we are investing in so that should help with the utilities. 

@Riley A HolzmeyerThis is how I calculate potential rentals: Loan( principle + interest + pmi + taxes + property insurance) Then add your expenses:Vacancy rate 5% of the rentMaintenance Capital expenditures Repairs Property management( add this even if you plan on self managing) Add all that up and subtract it from the rent and you will have your cash flow.