I would budget a higher amount for capital expenditures.

Banks in general want to see us to keep back 15% of gross rents for repair expenditures.

And the captial expenditures I would have saved by that time would not be sufficient enough to replace them. 

Also be sure to set aside 5-7% of rent each month for repairs, vacancy, capital expenditures, and 10% for management.

Of course, I also account for capital expenditures, future vacancies, future property management, etc, but so far, it’s working out pretty well!     

I assessed all of my numbers including 15% for property management and included capital expenditures as well as maintenance.

Not to mention that major cap-ex expenditures may be acceptable at different points in your life. 

They allow you to build up a capital expenditure fund to pay large items such as a roof, furnace, sewer line, etc.

The key is to make sure you have enough monthly cash flow to cover future monthly expenses (you must take into account vacancies, and make ready after a tenant moves out, and capital expenditures such as roof and AC).    

Would you suggest that I should factor in 15% repairs (3x my 5%) and another 15% for capital expenditures?