Even though Cap Ex % of 15% seems high, the dollar amount of $90 is low considering the age, condition and likely upcoming capital expenditures.

Here’s an example of a case study assuming a 35% tax rate: The company had repair and maintenance expenditures that were miscapitalized totaling $3,134,215.The company had $696,267 of tangible property regs for year 1.The company had $28,180 in dispositions.The total savings resulting from the Engineered Tax Deduction vs.

. $37,800 after 19% reserve for Vacancy/Credit loss and Capital Expenditure across the portfolio.Goals:We are looking to acquire a 50+ unit commercial-residential complex (<$4M) by the end of the year.

While deducting rehab expenditures is advantageous as it will certainly provide working capital, it doesn't mean you are legally allowed to do it.

Cap Ex is capital expenditures.  

This is a small expenditure of money, and it's flexible so you can work around your schedule.Also you may want to look into:Completing surveys on line; you can make $10-20 a week for a couple hours of answering surveys.

.= Deal # __________ Location: __________ 333- Message Me Property Type: __________Price: __________Acquisition: __________Loan: __________Down Payment: (20%) - __________Closing Cost – (3%) – __________Due At Closing: __________Rehab Estimate: __________After Repair Value: __________Equity: __________Income:Rent: __________Washer/ Dryer: __________Parking: __________Storage: __________Monthly Gross: __________Expenses:Mortgage: __________Gas: __________PMI: __________Garbage: $20 {Times The Number Of Units}Electricity: __________Water & Sewer:$75 {Times The Number Of Units}Taxes: __________ /12 = __________Insurance {$100} /12 = $8.34Monthly Expenses: __________Expenses:Vacancy {5-10%}- __________Repairs and Maintenance {10%} - __________Cap Ex - {Capital Expenditures} {8%} - ________Management {10%} - __________Operating Expenses: __________ {Optional} Future Assumptions: Annual Income Growth: {2%} Annual PV Growth: {2%} Annual Expenses Growth: {2%} Sales Expenses: {9%} Totals: Monthly Income: __________ Monthly Expenses: __________ Monthly Cash Flow: _________ Annual Cash Flow: __________ Total Cash Needed: __________ Cash On Cash Return: _____Monthly Cash Flow Total Including Operating Savings: __________Year Total Including Operating Savings: __________

From that perspective, I would recommend estimating the total capex over the long-term and then account for it as a pro-rated monthly expense.For example, I might have a house where I estimate the following capex expenditures:- New Roof (Every 20 Years): $4000- New HVAC (Every 20 Years):  $4000- New Water Heater (Every 8 Years):  $800- New Exterior Paint and Siding Repairs (Every 20 Years):  $3000- Plumbing Upgrades (Every 40 Years):  $5000- Electrical Upgrades (Every 40 Years):  $6000- Appliances (Every 10 Years):  $2000Based on those numbers, you can expect to pay about $24,000 every 20 years in capex costs. 

@Kaylee Walterbach, I wish I would have known how to evaluate my first house as a future rental--not just the difference in rent to mortgage payment--with capital expenditures, maintenance, vacancy, and property management costs in mind.

And of course all these numbers people throw out should include expenses such as vacancy, maintenance (future), management (even if you are managing), capital expenditures such as replacing the roof in 10 years.