Generally - Fewer capital expenditures, reduced operational costs and a better qualified tenant pool.

I just put in what I typically use (except for property management which is known)(I) Property Management = $1,008 (7% x A)(J) Maintenance = $720 (5% x A)(K) Vacancy = $1,464 (10% x C)(L) Collection Loss = $72 (0.5% x A)(M) Capital Expenditures = $720 (5% x A)(N) Total Expenses: $8,004NOI = $14,640 - $8,004 = $6,636Value = NOI/Cap RateDepending on the area, you'll have a different cap rateI use this rule of thumb for estimating cap rate based on property "class":A = 6-8B = 8-10C = 10-12D = 12+So the value at 8% cap rate for example would beValue = $6,636/.08 = $82,950With smaller multi-families, looking at comps is appropriate too I think. 

I also believe the calculation to this point does not include capital expenditures.

I am also curious how people look at capital expenditures and whether or not that budget is part of paying for maintenance replacement items, or just for big ticket items like roofs and furnaces.  

I am definitely reworking the numbers, I plan on reviewing the property in detail before closing so that I can get a good idea on life expectancy for the cap expenditures. 

If it's turnkey (everything is new or just a couple years old) then your capex expenditure shouldn't come around for several years.

When calculating cash flow on a potential property would I budget cash for capital expenditures and maintenance if I keep a healthy cash reserve for each property?

Does that mean if the roof falls apart, is the tenant liable to fix it or is it usual to have caps on capital expenditure and can I ask the landlord's agent to have a cap?

@Sam Ferguson - seems like a reasonable cash flow, but precious little room for Capital expenditure or future vacancy allowance. 

With $3100 rent, I would have $2300 for Operating Expenditure and hopefully some cash flow.My estimate Operating Expenditure total is 2530 .