16 terms you need to know in commercial real estate:1.Internal Rate of Return (IRR): A metric used to estimate the annualized return on an investment based on the timing and magnitude of cash flows.2.Cash-on-Cash Return: The annual income generated by a property expressed as a percentage of the initial cash investment.3.Discount Rate: The rate used to discount future cash flows to their present value in financial models; often represents the required rate of return.4.Capital Expenditures (CapEx): The funds set aside for property improvements, renovations, or major repairs.5.Gross Operating Income (GOI): The total income generated by a property before subtracting operating expenses.6.Operating Expenses: The costs associated with managing and maintaining a property, including utilities, taxes, insurance, and maintenance.7.Debt Service Coverage Ratio (DSCR): A measure of a property’s ability to cover its debt payments, typically calculated as NOI divided by debt service.8.Loan-to-Value (LTV) Ratio: The ratio of the loan amount to the property’s appraised value, used to assess risk in financing.9.Equity Multiple: A measure of the total return on an investment, calculated as the ratio of total cash flows to initial equity investment.10.Residual Land Value: The estimated value of land after deducting development costs and desired profit margins.11.Sensitivity Analysis: A technique used to assess how changes in key variables (e.g., rent, expenses, interest rates) affect financial model outcomes.12.Operating Pro Forma: A projection of a property’s income and expenses over a specified period, typically used for budgeting and financial analysis.13.Cash Flow Waterfall: A structured distribution of cash flows to different stakeholders in a real estate project, often involving equity investors, lenders, and developers.14.Leverage: The use of borrowed funds (e.g., a mortgage) to finance a real estate investment, potentially amplifying returns but also increasing risk.15.Equity Investment: The amount of money invested by equity partners or investors in a real estate project. 16.

New construction builders are offering some great incentives at this time and with new construction you should have little to no Capital expenditures over the first 10 years of ownership.

Capital expenditures and repairs in my opinion are the same thing.

As you keep bringing up things from the inspection report alone, there is just going to be lots of things, i.e. money expenditures, to address. 

Truth if you can not pass through your increasing expenditures with rent growth you will make less money comparatively.  

My W2 job will cover a couple thousand dollars of expenditures per month, and we'd have the rent money from our current home, plus some HELOC funds available if needed, so I don't see financial survival being an issue.

Ideally, would like a close to turn key or minimal cosmetic renovation ($10-15k). 3) Would need to be positive cash flow after conservatives expenditures - property management, maintenance, etc.,4) Looking to mainly acquire properties creativelyAny thoughts?

How much of that is for cap-ex (capital expenditures)?

This way you can be pretty sure you won't have too many big expenditures in the future.Management.

The key criterion you want to look at in a lender is the ability to finance soft costs and interest reserve (a true LTC on all project expenditures) and a lender who allows items such as developer fees and higher contingencies to be incorporated into the budget.