If you figured in a percentage for vacancy factorrepairs & maint. reservecapital expenditures reservemy cash flow would be lower, but like I said I don't touch any of it as I don't need to right now in my career.You don't have to move either to get into other markets for better cash flow, as technology can take care of that with various services.

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

You’ll need to set aside a percentage for capital expenditures (water heater, HVAC, etc) i have generally heard about 10% of the rents is a good number!

So 250 for monthly rents plus 100 for 2500 placement fee spread out over 24 month period)Turn cost: 3% or roughly $75-85/mo assuming $2k of repairs necessary to turn it Vacancy: 4% or roughly $100/mo assuming 1 month to locate and place tenant in 24 month term Insurance: 4% or roughly $100/mo (using one of my properties as example here)Property taxes: 9% or $225/mo (using on of my properties as examples)Capital expenditures: 3% or $75/mo (amortizating roofs, hvac, water heater, etc… over their useful lifespan)Operational expenses: 10% or $250/moSo technically 46% in total.

But all we need to get from the seller for underwriting is lease agreements/rent roll, estoppels, receipts for any recent capital expenditures and operating statements.

Vacancy %Maintenance %Capital Expenditures %Management Fees % We are using Brandon’s 7% ,10% ,10% ,10% set up and with those number we are coming up negative cash flow.Just trying to understand if we’re being to heavy on those expenses.Thank you advance for your time and help.

In real estate investing, it's generally prudent to separate your reserves for emergencies from funds allocated for capital expenditures (CapEx), maintenance, and vacancy costs.

Hansen more and more each day for proof of expenditures and work completed.  

Deeds to burial sites, certain transfers of ownership in real estate companies and farms and property passed by testate or intestate succession are also exempt from the tax."

He discusses capital expenditures, turnkey properties, cashflow, and why he thinks that $40,000 properties won't cashflow.