Capital Expenditures:  Again it is dependent on age, condition, and class of the property.  

Look at your other expenditures and debts to see if you can pare those down while you still have the full time income.  

There are many more fixed and variable costs that we need to account for.Monthly Operating Costs Taxes: $168.00Insurance: $65.00Utilities: $150.00Vacancy: $75.00Repairs, Maintenance & Capital Expenditures: $150.00Non-Payment of rent: $75.00After accounting for all the proper expenses that leaves the investor with a net profit of $343.00 per month.

As you have lived in the house and are very familiar with it, you should know in detail what the expected annual expenses will be (as well as any large Capital Expenditures you may have soon like a roof, HVAC, or water heater replacement). 

Brandon -  PM me and I will send you the whole thing -  I came up with the expenses by using the following parameters - I always include 5% vacancy, 10% management and some room for capital expenditures  - in this case $2000 / yr.  

I always look for a minimum of 2 upsides in an apartment building and preferably at least 3.Upsides can be improvement to occupancy levels, increases in incomes, decreases in expenses, dived and conquer, forced appreciation plays in capital expenditures, etc, etc.Buying a building that is already performing to just about it's highest levels will result in no upside, a very high ask price, and limited financing options.Again, these are just my opinions on the subject, and the areas you may be interested in may have some other strategies that are viable.

Any advice would be appreciated and thoughts on what I am missing, capital expenditures, etc..

Keeping in mind, once I own it my expenditures will be under 1k so I will be able to save about 1,000 a month after purchase to put toward repairs.Natalie

The belive that they would prefer to not have to fund a $2MM capital expenditure if they can avoid it; but they would also prefer if they didn't have to fund the entire amount of their remodel.What I'm asking is: has anyone been faced with a similar situation where the anchor tenant has requested contribution to their remodeling expense? 

I have not gone through my notes and photographs to start deciding what must be fixed immediately and what the costs will be but I am guessing that my initial estimate of $5,000 immediate expenditure is low by 100% to 200%.