I know their approach is to rehab the properties to address the major systems and ensure there is at least 10 years of life in them, but I'm wondering 1.) has anyone needed to take on a large capital expenditure on one of their RTR properties yet (and if so, what year into your hold period). 2.)

Renovations, starting two days post-closure, included overhauls of kitchens, bathrooms, flooring, electrical, and plumbing systems, and the addition of in-unit washer-dryers, with an average expenditure of $33K per unit.

I built a Google Forms and Sheets to track my expenditure and eventually used it balance my spending habits.

Seems to be more valuable than making $2400/year cash flow and that's without large capital expenditures.

Another reason to sell is to avoid a large capital expenditure like a roof, paving, or painting.

In terms of mitigating your risk - particularly if you buy a condo - consider a newer building, steel or masonry construction, a unit on Floor 3 or above where Flood insurance wouldn't be necessary, larger buildings where costs are spread amongst more owners, and buildings with a financially healthy HOA (track record of good management, reserves in the budget to cover large capital expenditures, etc).

@Rabia Khan leverage buyers agent experience. look for HOA cash reserves, check how old or recent HVAC is, kitchen appliances etc. the more recent and updated they are, the better it is for you as you dont have to invest in maintenance or capital expenditures.

@Terri B.To increase your Cash on Cash return on investment, it may be beneficial to use debt to obtain income and asset appreciation with less cash expenditure.

Documentation should include details regarding the business purpose, total use of the property, specific expenditures, business usage, and dates of expenditures and use.In the absence of such documentation, deductions are vulnerable to disallowance, leading to potential penalties and additional tax liabilities.

I've recently seen people giving advise to take out a HELOC as a means to pay your normal everyday expenditures including bills, and at the same time, taking your paycheck from job and applying it every month towards your mortgage payment.