Probably but it does deter a little.Any way, long answer is sure it seems good on paper, but I don't know of any actual cases unless its indian burial grounds from 2-400 years ago.

Even though some expenditures are big and the IRS requires you to capitalize and depreciate them over multiple years, they're still real expenses that will affect your cash flow.Further, you have a real risk of a tenant who requires a lengthy eviction or does major damage.

Wow 4-6 month payoff on your down payment that's not bad at all even with your capital expenditures this will be a nice deal.

This positions the borrower to have the UPB paid off and have excess cash for reinvestment into the subject asset to cover capital expenditures and/or any deferred maintance.

Learn how to put together an APOD which helps to determine all your expenses including a fund for capital expenditures, a percentage for vacancy loss, repairs & maintenance, taxes, insurance, mortgage payment, etc.

That little of a transfer won't usually handle Capital expenditures like a new roof, or a new septic field though.Hope it helps!

This does not account for variable expenses (repairs, capital expenditures, vacancy) which can quickly cut into your income if you cannot keep the property rented (vacancy) or increase your expenses if the property ends up needing repairs.Good luck with your investing!

Try to have him do the units 1 at at time so we can start renting one while continuing to renovate another.Then do an 85/15% split of rental profits until I recover 50% of my expenditure, then have it drop to 70/30% until I recoup the rest, and then have it settle at 60/40% into perpetuity. 

It had a lot of deferred maintenance when I bought it so most of my capital expenditures have been because of those deferrals.  

For those who invest in the area, what percentages do you usually use when determining maintenance, capital expenditures, vacancy rates, etc.