If you have a lot of repairs and capital expenditures it could push you into the red.

Then, how much of the rent will disappear on the mortgage AND holding expenses (property management, vacancy, maintenance, capital expenditure, insurance, taxes...)?

Property#1Property Address: 508 Alleghany Rd, Fayetteville, NC 28304, USAPurchase Price: $43,161Rehab Cost: $13,900ARV: $80,000Current Rent: $900Vacancy: 7%Property Management: 10%Capital Expenditures: 5%Maintenance: 5%Total Time from purchase to refinance: 12 weeksTotal cash invested: $0 Monthly Cash Flow: $137What I would do differently: Ok so this was my first property so I was scared to death and was banking on the 2 years of learning and networking I had done prior to purchasing this property for wisdom and guidance.

Buildium will also categorize each expenditure into the proper tax category. 

The basic idea, is that if the expenditure restores something to its basic functionality, it is a current year deductible expense.

In all of the projects I look at, virtually no one sets aside sufficient funds for capital expenditures.

As nice as it would be to have it continuously rented, even if it was vacant for six months, if I charged double for the other half of the year it was rented, I'd be even with the rental income I'd have collected if someone had signed a one year lease.Capital expenditure repairs are something that makes me a bit nervous too, especially since many of these quadplexes seem to be built between 1920 to 1960, give or take.

I wanted to get at least 250 a door on the multi with out capital expenditures.  

Lastly, you'll want to include an annual expense for capital expenditures.

Repairs done before that date are considered capital expenditures.