I.E buying a home that they know would need a large capital expenditure within 2-3 years.

Using this formula, combined with cap rates (see below), you can underwrite all types of income property investments.Construction Cash Flow AnalysisThis is the flow of expenditures during the construction period.

Even if you are in a "free living" situation you should be setting aside some cash to cover expenses and/or vacancies when they do occur.Just by owning you might be able to reduce your expenses, but if you don't plan for expenditures you're jeopardizing your future success.

But there's other initial time expenditures such as getting the listing up and running, etc.After that, you'll have a little bit of a learning curve while you figure out the most efficient ways to communicate with the guests, but once you hit a pattern with that, there are tools you can begin using to automate the repetitive parts (and after awhile, a lot of it gets repetitive!).  

I can work in a higher Capital expenditures but vacancy is not going to be an issue.

Most junior lien holders that initiate foreclosure, do it for one of two purposes. 1) because they have ran the numbers and know that if it reverts back to them, there is sufficient equity to pay off the first and then sell it on the open market to recover their expenditures. 2) (My favorite) is to catch unsuspecting bidders asleep at the wheel, that will bid, and then take them out (junior lien holder) and then be faced with the senior.

What is the vacancy factor, repairs, CAPEX(capital expenditures), property management.

. $200 cash Flow Isn’t that great not knowing if that $200 is after mortgage taxes insurance Capital expenditures and all other items you have to account for

If I'm able to pull out most or all of my money and have someone renting the property for an amount that will take care of all my monthly expenditures with that property than I'm good?

@Ben Leybovich I have increased it to $500 and the deal is a little tight, but still works.General interior and X terrier maintenance and repairs including the parking lot are linen item  maintenance costs.Major building improvements  interior, exterior and parking lot would be considered capital expenditures.