So, when you replace something and make it bigger, better, or last longer, it’s categorized as CapEx.On the other hand, repairs are generally routine maintenance tasks that keep the property in its ordinary operating condition.

At the same time, housing operators are havingto repair damaged units while insurance costs spiral ever higher.Thebottom line: Revenues are falling while expenses are rising.Thereare no quick remedies.

My core investing philosophy is to approach opportunities with a long-term outlook.

The IRS typically operates at a snails pace.  

I know plenty of investors who will happily pay one of the many firms out there who help place equity so they can focus on their core competency which is running their real estate business (me being one of who would gladly pay a fee so for access to equity and the ability to focus on what I do best as a developer).

If passively through syndication - Start looking for strong operators or fund managers with good deal flow.

Now look at operations and systems.3.  

There are many nuggets of info and great questions to ask operators as you're evaluating a deal and their underwriting.

Come even the slightest ripple (an increase in property insurance, an unexpected repair, etc.) and suddenly you're drowning in a sea of negative cash flow.Also, are you including both professional property management and vacancy in your operating expenses?

Besides certain reporting requirements being spelled out in the Operating Agreement, a lot will depend on the type of offering that was made when investors were given the opportunity to invest.