Like wanting to sell a property in a declining area, in an HOA, that is coming up on 80K in capital expenditures, etc. 

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

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.

Remember when you’re analyzing properties, you have to include estimates for PITI, Repairs and Maintenance (5%), CapEx or Capital Expenditures (10%), utilities and possibly keeping some reserves in the bank as well.

Since turnover has been rare for me, this is also not a big dealWhat HAS been important for me are capital expenditures.

., 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.

Typically when we look at acquiring a property, we underwrite a reserve for any capital expenditures that may come up in addition to at least two months of mortgage payments, which typically included taxes and insurance.