I've found durable flooring to be one of my best expenditures, but what type depends on the house. 

Based on the information you are able to squeeze out of the broker/seller: Create a chart listing major capital expenditures Analyze the total replacement cost for that item today based on the marketUnderstand the useful life of the item in the market Itemize the CapEx items you will need to replace ASAP (12-18 month window)Here is an example of what I'm referring to: https://www.biggerpockets.com/blog/wp-content/uploads/2015/03/CapEx_Aricle_TABLE_1.pngAlso, set aside a decent amount for operational reserves so you're not using cash flow to fix problems after acquiring the property, maybe $250/mo/unit or $300 - $350/mo/unit if it's an older property.

@Dan MummWell, I have really run these properties like a business (keeping reserve, running CoC, annual return, growth... etc) I’ve had them both for over 14 years and this is the first big expenditure I’ve had so now that I’m looking to move into being more deliberate expand I’m shifting my record keeping to be in line with everything I’ve been learning in the last few months.

Even with an extensive rehab I still set aside at least $150 per month for maintenace and capital expenditures.

A lot of investors see that 5-7 year time frame as the optimal window to move on from a property because it is often around the time that many capital expenditure items start needing to be replaced again which begins erasing built up cash flow. 

You have no CAPEX (capital expenditures) 10%. 

Property tax, insurance, vacancy, property management,repairs, capital expenditures (roof, etc). 

a custodian will be in charge of expenditures for a set period.

Tyler, have you factored in maintenance, capital expenditures, vacancy, etc?

108 s. 36th street Newark, OH 43055Assumptions: $120,000, $4,200 down payment (3.5%) Income Rental Income- $900  Laundry- $0 Storage- $0 Misc- $0 Total Monthly Income= $900 Cash Flow Income-Expenses= 900-1,190= -$290 Total monthly cash flow= $ -290 Expenses Tax- $170 Insurance- $65 Utilities- $0 -electric -water -sewer -garbage -gas Home owner association fees- $0 Lawn/snow care-$0 Vacancy- $90 Repairs- $ Capital expenditure(roof,water heater, replace big items)- $135 Property management- $100 Mortgage- $585 PMI- $45 Total Monthly Expenses= $1,190 Cash on cash return on investment (ROI) Down payment- $4,200 Closing costs- $3000 Repair budget - $1000 Misc/other- $0 Total investment: $17,200 Annual cash flow x 12 Annual cash flow divided by total investment=ROI -3480/17,200= -0.20%