When I used the 1% rule for maintenance ($4500 per year) plus the above expenditures), I came out with a NOI of $22,200 after expenses.

What they quickly discover is that virtually a single capital expenditure, a few inflated vendor invoices or a slow turn, could literally obliterate that month, quarter or year of being in the black.Likewise, PM's have to be concerned with much more than "Tenants, Toilets and Trash".

@Jacob Breazile - Make sure to account for the following expenses:1) Mortgage2) Mortgage insurance (PMI or MIP) or FHA Risk base3) Property Taxes4) City Taxes5) HOA (Home Owner’s Association) Dues and Fees and Assessments6) Insurance Property Hazard InsuranceFlood InsuranceEarthquake InsuranceUmbrella Insurance7) Vacancy Rate (usually 8% - the equivalent to one month a year, or 5-6% if multifamily and/or if experienced, if not use 8%)8) Utilities (you’ll have these if your tenant is not covering them and/or during vacancy) Water § Sewer § GarbageElectricityNatural GasPropane9) General Maintenance (usually 5%) Upkeep § LandscapingSnow removalRepairsNew Appliances10) Capital Expenditures (usually 5%, higher is the property is old and obsolete, less if fully rehabbed and all mechanicals and roof are new)11) Property Management (8%, even if you self manage, your time still has value and there might be a time when you'll want to be completely hands off or you'll not be able to do it, vacation, retirement, etc.)

Hey all,Where do we store CAPEX (capital expenditure) and other long-term money?  

Don't forget to keep reserves for maintenance and capital expenditures. 

Don't forget to keep reserves for maintenance and capital expenditures.

If the expenditure is only for your personal unit, then pay for it with your personal accounts.

The 10% is accounted for in other expenditures, along with landscaping.

I like the idea of flip to rents (BRRRR), so you don't have to worry about the immediate CAPX expenditures.  

We wIll have capital expenditures in the form of HVAC and water heater coming in the next few years, but everything else is in great shape.