@Mitch Genser ,Mold remediation would not be a capital expenditure.

Since many of my favorites have already been mentioned above, I'll add a paraphrased quote from Charles Dickens about living within your means:"Annual income twenty pounds, annual expenditure nineteen, result happiness.

Another 10% for vacancy.You have 2% left for your maintenance/repairs/capital expenditures.

Thanks for the input.Jeff S. so as a gauge you would put capital expenditures at 15% of gross rent?

Make sure any contract you enter into prohibits expenditures beyond a certain amount, without your written authorization.As with any new relationship, the amount of time you spend as an owner will probably be directly proportionate to your comfort level with the manager and management company.

That's essentially what Joel is telling you when he says the bank doesn't really care if you make a profit, but they want to be sure you have enough, (actually, more than enough) cash to make the mortgage payments.Finally, that appraisal is almost certainly going to be based on capitalizing the property's NOI, so you should recognize when making your projections that repairs and capital expenditures are not treated the same.

You should also ask for the depreciation schedules (4562), to give some clue as to any capital expenditures that they made the prior couple of years.But it's certainly true that if you don't get them directly from the IRS, or at least from a CPA or other professional preparer, they can easily be forged, as can any kind of reporting they provide.

Its buy and hold investment properties, vehicles, primary residence, wife expenditures, funeral, etc, all at once.

Under hardship they cited things like High Medical Bills, Burial/Funerals, Education, ... etc.

Those properties can work for long term holds, minimum one full apartment investment cycle, provided they're acquired with long term fixed rate financing and they cash flow adequately after reserves for future capital expenditures are set aside.