What figures would you use in figuring Repairs or Capital Expenditures when either underwriting a new construction duplex/group of duplexes or possibly purchasing a group of newer (around 5 or so years old) duplexes.All would be class A at least for my local area - Granite counters, sprinkler systems, 2 or 3 car garages, 3 bdrm 3 bath, Smart Siding (50 yr siding) etc.I'm sure the same logic could apply to a new construction or newer build apartment complex.

This would take 16 months income to pay off.On the business side we have a couple of recent credit lines that were opened up to finance some capital expenditures. 1.5 months income to pay this off.

Another way I like to think of things is getting 28 cents (or so) for every dollar you spend on interest (or some other deductible expenditure).

To clarify my earlier post, the expenditures were for the water cleanup and quick drying, to PREVENT the growth of mold.

Remember: businesses get taxed on revenue left over after expenses where W2s get taxed before expenditures.

Also determine building expenses (taxes, insurance, utilities, and VERY CONSERVATIVE MAINTENANCE/VACANCY/CAP EXPENDITURE PERCENTAGES!)

As @Bill Gulley pointed out, each of the properties can be released individually to allow for a sale of any single property; make sure that in exchange for the release you actually get a payment of a big chunk of the loan principle amount since that way your funds won't be diverted to some other expenditure the borrower might have in mind.And you want to see scope of work list for the properties to be renovated from the loan proceeds, plus contractor estimates for the scopes of work to ensure that the loan amount will be sufficient to cover those planned improvements plus the unpaid liens. 

On average, most investors allocate about 10% of their operating income to capital expenditures.

To make it very simple, if an expenditure produces both current and future year benefits, the determination as to whether the cost should be capitalized or expensed should be based on a careful examination of all the facts.Taxpayers must capitalize amounts paid to restore a unit of property.

From rough calculations, it seems that it'd be a smaller capital expenditure than a regular property while still demanding high nightly rates for the novelty of it.Does anyone have experience as a tiny house host?