And you're absolutely right, those major capex can really eat up all that prior cash flow.  

It will eat up some of your profit but since your margins are so much higher, ask yourself if it's worth knowing the deal will close. 

Hey Bryan K,As a full time real estate agent, I have dabbled in property management ... but I find that I am WAY too nice ... and it eats up time I need to devote to my real estate sales business.Totally wild that you mentioned John Stiles, by the way - I've already been in touch with him!  

Flying to four different cities will eat up cash flow.

If I were the neighbor - I wouldn't eat extra costs on my bills for someone else's work - would you? 

as they spend more of their time exploring and eating out...they don't come to visit my VR.

Keep in mind that the lower down payment and additional required mortgage insurance will eat into some of your cash flow however.Good Luck!

If the taxes, insurance, or other expenses start eating into your margin in future years and cannot be offset with rent increases, determine how much COCR you are willing to give up or look at selling (1031 exchange) to get into a different property where the numbers still look good for the next 3-5 years or more.

And the contractor, if he missed something, you would expect him to eat the cost of it right?  

However, the website also tells you which banks offer homepath financing.One local bank I spoke with in an area I just started investing in has started doing a loan type similar to a homepath loan with less money down, but you eat the costs in the other areas.Account Closed I think it's better to avoid an FHA loan at first, because you should try to avoid PMI as an additional expense.