I've been considering starting a property management company as well, but not sure if I want to have all the expenditurers that goes along with this type of business.First I think you're going to need a brick & mortar presence, or rent some office space.

They have been working on making R&D permanent, which may not get done I think the credit will get extended.In this economy, I just don't see them allowing the capital expenditure credits go away.

New investors often miss things like capital expenditures or trust proformas provided by listing agents.Look forward to getting to know you better and hearing about your experiences along the way.

Future capital expenditures should be considered.

Life insurance can be calculated where one is paying 60 cents on the dollar to provide burial expenses. 

Sounds like a minimal deal to me.Instead of one property you are having to look at 4 with different capital expenditures and rent levels.10 or 20% down with owner finance might be appealing with a great cap rate.The seller will need to look at money down versus what it would cost to foreclose and any personal guarantees offered before owner financing.

The seller many times believes the property is worth more than it is.A 7.5% cap on a mobile home park is an awesome selling price.You can buy at a 7.5% CAP but then if unforseen problems arise you now have a 6% or a 5.5% with capital expenditures hurting anticipated cash flow.Like I hear from many investors if I pay cash I want to buy at 10 to 12 cap so if something foes wrong I am still at 9 to 10 cap.I can't blame them at all and also can't blame the sellers for wanting top dollar.Washington and others states the cap rates are lower and costs of living is higher.I like my state personally as you can drive high returns and cost of living is lower.Each state will have it's pluses and minuses though.

Not a fire sale, but the market was weak and we priced to sell.2010 - Spent quite a bit more than we had anticipated on updates to our new place.For 2011 we have no anticipated major expenditures, should see Net Worth rise 15 to 20%.

Are any reserves for future capital expenditures included here?

Because of other things he mentioned, I made a couple of calls last night and, though still apprehensive at this large expenditure, am somewhat more comfortable.