There are still some capital expenditures on the horizon since they have literally done nothing since it was built in 2008. 

You need to consider, taxes, insurance, maintenance, capital expenditures and a whole lot more.

How I would go about calculating it is take all your potential capital expenditures for example your hvac and roof.

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

This is why the spreadsheets that analyze real estate investments include lines for vacancy, all expenses, taxes, capital expenditures, etc. so that you can be very certain that the asset can pay the loan payment each month and you don't lose sleep.

Many properties will need some rehab and there may be some holding costs even when you have a rental property.3) Not including all of the costs in the deal analysis including vacancy and future capex expenditures.4) Not performing adequate due diligence or assuming that others have done your due diligence for you.

Now with regard to your rehab costs, you will need to determine whether those costs get capitalized or expensed based upon the nature of those expenditures.

With online banking today, a defacto budget can be seen by, downloading all transaction from the first of the month to the last day of the month, eg Jan-1 thru Jan-31 in CVS format.double-click on the file and you get a spreadsheet.annotate each line by the kind of expenditure it is: {cash, food, utils, car, internet, entertainment,...}select the column with your annotations and sort ascending, extend the selection.If you know Excel, insert a line between the groupings, and SUM() the values of each groupwhoola! 

Hoping to better understand the implications of this and adjust our expenditures for future years accordingly.

If, however, the Purchase and Sale Agreement for the replacement property was specifically made contingent upon the satisfactory completion of these items, the Exchanger could argue that these expenditures were really for the purchase of the property and not to obtain a new loan.My sale contract states: "This sale IS conditioned on the appraisal of the Property being not less than the Sale Price..."