Are you accounting for vacancies, repairs, capital expenditures in those numbers?

Hansen more and more each day for proof of expenditures and work completed.  

The usual scenario is to leverage your return higher by borrowing at interest rate lower than your cap rate.In your example, assuming no capital expenditures, loan costs, closing costs, etc... a 7.7% CAP and 80% loan, rough estimates of your CoC return at different interest rates might look like below: Interest Rate Cash on Cash Return 4.0% 15.6% 5.0% 12.7% 6.0% 9.7%As you can see the lower the interest rate on the loan the higher the return.Cheers...

Many times investors will do this by managing better or making capital expenditures that justify charging higher rents.

The expenditure should be in the same calendar year to wrap it in with your tax credit.

I will have the discussion again during tax season if I end up with passive losses.Edit: Active participation means making significant management decisions, such as approving rental terms, repairs, expenditures, and new tenants.

Many do not budget for capital expenditures.  

How about capital expenditures?

But what about all the other expenses like on-going maintenance, capital expenditures, vacancies, etc?

My number is for big ticket capital expenditures... not repairs & maintenance costs such as paint, toilet repairs, etc.