I know capex = capital expenditures, so I assume you would want to allot an amount each month that goes into a pot for big things like windows, roof repairs, furnace replacement, etc?

You are correct - I'd be cash flowing at least $150 in my most conservative projections, while living for free and essentially escrowing my rent for major capital expenditures, vacancy, and future property management services.

Is there a large capital expenditure coming up soon (like less than 5 years left of the roof)?

You should be factoring in taxes, insurance, repair costs, capital expenditures, landscaping, and property management.

I've found you really can't go wrong with the 2% rule.It limits you to smaller and cheaper properties, which in the long run increases cash flow due to reduced maintenance, taxes, insurance, & capital expenditures.  

I think between 9 and 11% for a well-performing asset that will need little in the future besides 3-5% in reserves for future capital expenditures is fair.

Don't see those.Long term Capital Expenditures/emergency reserves: Big ticket items like roof/furnace, evictions, tenant turnover.

My purpose here is to make sure that you are able to determine wise expenditures to increase your profit potential.Rich

since Tim here likes to brag about wasilla's financial greatness under palin I thought some fact check would be in order, here is what I found, Now if I were Tim I'd say check mate (or mission accomplished) but I'm not...Total Government Expenditures Increased 63 Percent Under Palin.

And with your DBA, you can open a bank account to keep your rental business expenditures separate, which makes tax time much easier.For #3, this turned out to be untrue.