@Trevor MillerCapital expenditures is usually separated as another expense apart from maintenance/repairs.

I think it will make more sense for section 8 if it is close to commute, there is a substantial cash flow after all expenses are accounted for and if there is not too many projected capital expenditures. 

Take into account if you have to PCS out of the area in the future, is your rent going to cover the mortgage ON TOP of property management fees, regular maintenance, reserves for vacancy and big ticket items that you have to replace over time (capital expenditures). 

It does not let you categoriza transactions as capital expenditures either (I.e my New HVAC that I financed and am paying monthly).Like they say, you get what you pay for... the tool is free, and I was able to collect rent eventually...

But, you should also be considering repairs, vacancies, capital expenditures, and property management. 

They’re relatively easy to purchase and a heck of a lot easier to manage (I also have an 18 unit mixed use building), and don’t require much capital expenditures.  

In most places, the real estate will seem cheap but it will not appreciate materially, your tenants and/or property managers will drive you crazy and accruing capital expenditures will eat up all of your cash flow.         

The sweat equity must be greater than 15 years projected Capital expenditures (new roof, siding, window, ect). 4.

Do you know how much to set aside for maintenance, vacancies, or capital expenditures? 

The thought here is that they could deduct their full lease payments (fair market value to rent that home would be approximately $2,800/ Month) as business overhead and the upkeep for the property would be classified as Capital Expenditures under the property holding business.