The difference is where has the money been expended before the deals are done?

Time and effort expended by the taxpayer in promoting sales5.

It sounds like You've already expended the money to keep them in pretty good shape for a number of years. 

Ryan nailed it with both his confusion and his explanation.The "cash" into a deal can be several things... it can be the purchase price (if buying in cash), it can be the down payment (if financing), it can be closing costs (if not paid for by the seller), it can be repair costs (if required and not rolled into the mortgage), it can be back taxes or other cash expended to close the deal... whatever it is.The denominator (bottom number) in your CoC return is quite simply the sum of every single dollar you have sunk into the property to get the rental stream started.

Maybe I because I still haven't tasted the sweet fruit of investment income..Maybe I need to expend my dreams and goals, since that new shiny kitchen is looking less likely to happen:-). 

A furnace filter is an expendable part that may be expensed.The nature of expenses are usually those that have a short life, are expendable, used and thrown away like a mop head and cleaning supplies, office supplies.Insurance is an expense in holding a property from day one, it is not part of the property, nor are taxes or HOA fees, your city license.These differences are found in Financial Accounting Standards Board (FASB) rulings with respect to generally accepted accounting practices (GAAP) as well as the Code setting schedules.

There was a need for an EAT to hold title to the replacement property over the period of time from the closing of the relinquished property until all the remaining funds  were expended in improvements.   

How much time, effort and expense can you afford to expend on a $12k property? 

can any one expend on that or am i right in thinking thats pretty much it?  

Year built is 1999 and has new roof and fence.Rental income: $1900 monthly (is average for market)Monthly Expenses: $496 for property taxes & $300 for insuranceUsing BP calculator for an all cash deal I get:Purchase Price: 100kCash on Cash ROI: 7.56%Monthly cash flow: $629.83 (assuming 4% vacancy, 5% repairs, 6% cap expend, 10% managment)So from this I see that an all cash deal would yield great monthly cash flow with an OK cash on cash ROI.