However to be honest, these are just rough estimates and you really don't know with any precision the capital expenditures that will accrue once you first take possession of the property. 

I'm currently netting about 9% on them (income only and not including price appreciation), but I had the advantage of purchasing them a couple years ago in Tampa, which was good timing in an excellent market (and also had a good year last year with very few capital expenditures and repairs.

If you are an employee, convince your employer to restructure your compensation to accommodate these expenditures as tax-free reimbursements.File an extensionMany practitioners have maintained that the audit rate has been lower for extended tax returns.

.- No major capital expenditures or repairs identified following inspection.- Tenant profile is favorable.- No new ordinances affecting the value of the property.

Not to mention I haven't added any captital expenditure like appliances, roof, hvac etc.

You should.What if you need to do a capital expenditure?

Does that 50% also include capital expenditures?

Capital expenditures and improvements will happen.  

As he mentioned, you have to considered the other costs such as property management, repairs/maintenance, any large capital expenditures now or in the near future.

Have you factored in other costs (vacancy rates, repairs, capital expenditures, taxes, ect) into overall loss you want to take?