Full rent - $7925                       / $9000 (max for all could go over $10k at current market)Taxes - annually - $7934          / Monthly - $661Insurance - she pays $340 monthlyManagement - $555 monthly   / $630Cap Ex - $531 monthlyVacancy - $634 monthly         /$720Annual Gross income - $95,100           / $108,000 (at $9k a month)Annual Expenditures - $32,662           $900,000 purchase price with current rent Cap Rate - 6.94%  rent at $9k 8%  - rent at $10k 9%$850,000 ...... 

I know that if I eat less than 2000 calories of healthy food and exercise I will lose weight, but until I actually do it...Meet some people who are doing it.

Here's what I do.Set aside 10% (or whatever you determine) more for each of your allotted expenditures (maintenance and repairs, taxes, insurance, utilities that you pay for, trash, debt service, cap ex, etc.) each month. 

The O in NOI is short for operating, so it follows that cap rate should not include NON operating items such as capital expenditures, debt service.Cap rate is not meant to be inclusive of all expenses (i.e. even the large ones).

Are your homes going to be newer where your Capital expenditures are lower?

Sorry for double posting, but editing sometimes will not highlight the post.After reviewing our options we have decided that we can save much more on monthly expenditures by buying the property we want.

My existing mortgage principal and interest payment on that property would be $1,359/mo bringing my total PI expenditure to $2,402/mo.Cash-Out Refi taking out $170,000 @ 4.25% interest.  

However, most course require annual capital expenditure between $500,000 and $1.0 Million before you really even talk about any food and beverage or other additional services.

Normally appliances are capital expenditures and get amortized, but 179 allows special cases.

And we have taken care of most of the major expenditures this year but with another roof to do next year.