Hi BiggerPockets Community -I'm currently taking on a flip that's going to need some repair on the roof (specifically the truss) due to some fire damage prior to the acquisition.

Roofs, siding and a large deck needing repairs on the bigger rental.

When were the roof and HVAC last replaced?

Look for a tarped roof.

Fix the roof and replace carpet (but we don't have cash reserves to pay for it). 

In Los Angeles, $385K won't even get you a 1 bedroom condo with a caved-in roof and negative cash-flow.It was bad enough 2 years ago, but now with the Rams moving back and the new stadium under construction, things have gotten bat guano insane.

Unless it's near a university, no one wants to rent those.You will have much lower capex - there's no roof, no foundation, no gutters, no hot water heater, etc.

One day I came home from work, and a neighbor told me that the repairmen had been on the roof, working on the unit again.

Now this does NOT include capex spend, so if it needs a new roof or if something material broke, there’s the whole two years of FCF gone.

Otherwise the points you make are very valid about fewer roofs, bathrooms and kitchens.