Indeed, we could purchase some we’ve seen for cash but our goal is to use as little money as possible of our own and of course to recycle it over an over.We are faced with a decision, as we have plenty saved for a down payment, along with money for repairs or capital expenditures and holding costs.

A lot of the press is about justifying the massive expenditure they are about to make. 

Here is my list of comprehensive items to account for when evaluating an investment: 1) Mortgage2) Mortgage insurance (PMI or MIP) or FHA Risk base3) Property Taxes4) City Taxes5) HOA (Home Owner’s Association) Dues and Fees and Assessments6) Insurance Property Hazard InsuranceFlood InsuranceEarthquake InsuranceUmbrella Insurance7) Vacancy Rate (usually 8% - the equivalent to one month a year, or 5-6% if multifamily and/or if experienced, if not use 8%)8) Utilities (you’ll have some or all of these if your tenant is not covering them and/or during vacancy) Water § Sewer § GarbageElectricityNatural GasPropane9) General Maintenance (usually 5%) Upkeep § LandscapingSnow removalRepairsNew Appliances10) Capital Expenditures (usually 5%, higher is the property is old and obsolete, less if fully rehabbed and all mechanicals and roof are new)11) Property Management (8%, even if you self manage, your time still has value and there might be a time when you'll want to be completely hands off or you'll not be able to do it, vacation, retirement, etc.)

But when I get a turnover, eviction, or capital expenditure that cash flow got destroyed.Honestly, appreciation way way beats cash flow.   

The capital expenditures and maintenance alone would probably be more than your current net cash flow, even if you completely renovate everything.

We could've gotten properties without pools in them and had less expenditures cutting into our monthly cash flow.

., a recession, capital expenditures for repairs, or tenant property damage).Solution: The majority of the forum members are against your real estate due to "speculating," whereby an investor bets that the property will appreciate more quickly compared to their losses.

Also, you mentioned raising rents across the board, but I don't see a budget for capex (capital expenditures) figured into your return.

@Sam Grooms -- When you say "excluding capital events," are you saying you exclude capital expenditures from your calculation of CoC?

I factor in capex (even if I didnt have a cap expenditure that year), maintenance, estimated vacancy usually 8% of gross rents, and sometimes property management fee since managing a rental isnt free whether my time or someone else's.