Others pay a property management company and use something closer to the 50% number.So, from the remaining 50-60% of gross rents, you have to pay your mortgage (principal & interest), and the remainder, if any, goes into your pocket.The 40-50% number supposedly accounts for capital expenditures over a long time period for buy-and-hold investment properties.

Since the home warranty is priced into the sales price, the tenant actually pays for it and it cover them with any large capital expenditures which could affect them making their payment.Like someone said here before, it is simple insurance.

Or doing a large capital expenditure like installing AC and then bring the rents up $100.00.

But receipts for capital expenditures have to be kept "forever".Something else that I did when I got more than 3 properties was to make a "cheat" sheet that stays right on top of my desk.

Would it be more economical to utilize the equity in his home to supplement his expenditures.

What kind of taxes and other expenditures am I looking into per year after having bought a house?

Ideally, it would provide QucikBooks-type reports and info for tax purposes, as well as track investments and expenditures in other investments.

I am working on something that I can create to plan for capital expenditures and longer term improvements/expenses.What am I missing?

On short months you may potentially have to sell your stock holdings to cover repairs/vacancy/capital expenditures/other perhaps even at a time when you may not want to realize a gain/loss on your stock or option positions as an example.

The allure of vacation rental property seems to surpass the mundane of just regular old rental property not at a great location.The mystic of resort property is so much stronger that people who would not buy rental property end up buying vacation property and rationalize the expenditure by saying that they'll get to vacation at their own place AND get renters to essentially pay for their vacations.