I also thought the Wyoming CAFR (comprehensive annual financial report) might be interesting to read https://drive.google.com/file/d/0B78Yf4yTSYVYcWtQa...If you go to page 42, you can see the difference between the revenues and expenditures ending June 2016 for the general fund.  

10%Capital Expenditures (CapEx )?  

Expenses, calls from tenants, vacancies, pending cap-ex expenditures, etc.

Can anyone offer assistance with how they calculate Vacancy Rates, Repairs & Capital Expenditures into their monthly expenses?

Here are my numbers:Deal #1: 6 unitPurchase Price: $435,00025% Down: $108,750Gross Income: $67,332Utilities/taxes & Insurance: $8,121Mortgage: $21,000Vacancy (10% of gross income): $6,733Property Manger (10% of gross income): $6,733Capital Expenditures: $7,286Maintenance (25% cap ex): $1,822---------------Yearly Cash Flow = $15,637Cash ROI (yearly cash flow/down payment) = 14%********************************************************************Deal #2: 12 unitPurchase Price: $418,00025% Down: $104,500Gross Income: $117,924Taxes (did not see in expenses): $2,024Insurance: $3,815Utilities: $15,260Mortgage: $20,195Vacancy (10% of gross income): $11,792Property Manger (10% of gross income): $11,792Capital Expenditures: $12,954Maintenance (25% cap ex): $3,239---------------Yearly Cash Flow = $36,853Cash ROI (yearly cash flow/down payment) = 35%

Capial expenditures usual l y need to be capitalized and depreciated.  

It's not move in ready without a large expenditure that neither of us can do at the moment.

At first I decided to avoid the capital expenditures associated with older buildings by buying a new home for $130K. 

But it's only been 8-months with the second tenant so I can't guarantee anything.Three reasons I may want to hold on to it: 1) it has appreciation prospect (better than the 60-70k SFH portfolio in Birmingham IMO). 2) The lease is till October, so I can't sell it to a homeowner currently. 3) it has a pretty big lot that I can potentially sell to a future investor for subdivision.Three reasons that I may want to 1031 exchange: 1) get 135k cash after commission instead of 100k, and no negative cashflow subsequently 2) reduce the number of markets and PM of my portfolio, so that I can focus more on one market (I want to stay passive with my full-time job) 3) get out of it before major expenditure hits (don't think it's going to happen in 4-5 years though)If you were me, what would you do?

I would also make sure to include all the other expenses (taxes, repairs, capital expenditures, utilities, etc) in your analysis.