And the 2% rule is just an ideal guideline.Don't forget to include capital expenditures and debt service in your expense analysis.

That gives us more money up front and we don’t need to save much for capital expenditures which maximizes the monthly cash flow.

I would budget a higher amount for capital expenditures.

I believe this will will make for a solid 2015 for everyone I work with.I'm also considering selling my primary residence to pay off my HELOC, free up a ton of more capital to invest with, and reduce my monthly expenditures significantly.

Price 179,00Down payment: 10%Interest: Principal onlyGross monthly income: $1,500Loan terms: 30 yearsClosing cost: $4,000Property tax: $90/monthHomeowner insurance: $70/monthVacancy: 5%Repair maintenance: 5%Management fee: 5%Capital expenditures: 5%

Any such expenditures would count toward that investors contribution to do the split calculation above.

The $500 capital expenditures reserve is crap.

If you can't book on any appreciation to offset CapX expenditures the true cost ends up being a huge hit to cash flow and can bust the deal.  

A roof over your head is an expenditure.

If what you are putting in remains in place without needing to be replaced again after 1 year, it is an improvement/capital expenditure.