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.

Second, when Capex is spent, it's generally spent as a Capital Expenditure (Capex) and is not a current expense item.

Hey Daniel, Did you include other expenses associated with the property such as repairs & maintenance, capital expenditures, property management, vacancy, taxes, insurance etc. within your analysis?

Since the property is very new, there are probably very few repairs or capital expenditures.

@Nicholas Jestus Capital expenditures are not included in the Net Income.Your goal to nail down the true number is spot-on. 

CapEx is capital expenditures, big ticket repairs/replace items that you have to capitalize vice expense.