Asking price: 215k Purchasing price: 205k Appraisal value:228k Gross monthly rent: $3,260.00 Financing: conventional loan 25% down payment Vacancy 10% / Repair and maintenance:10% / Property management 10% /Capital expenditure 3% Cash in Cash Return is 10% Keep the number conservative: even though we are currently managing the property ourselves and it’s fully rented.

However, I noticed that Gary Keller does not appear to take Capital Expenditures into account in his analysis of monthly expenses. 

It means the cash you can expect to put in your pocket on average after paying the mortgage (your HELOC in this case), taxes, insurance, maintenance, capital expenditures (expensive repairs like a new roof), management, and vacancy/non-payment.People who invest for appreciation may not care about cash flow. 

I’m running some numbers on the bigger pockets calculator and was just wondering what a good rule of thumb would be for setting aside monthly expenses and capital expenditure?

This was in Hawaii, so it may be different for you, but I was told that I could file the same expenditures for my house with out an LLC.

I see posts on BP all the time where investors are depreciating things like appliances and other expenditures below the de minimis limit....makes me cringe.

I’m not sure about delayed maintenance/ capital expenditures that will be needed.

On most months you will cash flow nicely but in the long run you will notice a lot of your cash flow getting eaten up by things like vacancy and capital expenditures.

Tenants don't prioritize keeping your property in good "health".I would evaluate where you stand in regards to large cap-ex expenditures and then you hold 1-3 years if you think the roof, AC etc will hold up.

When analyzing a property you want to be able to see where you can either increase your income and/or cut expenditures to boost your bottom line.