Rental income is subject to tax, but it is also possible to deduct many costs related to owning and maintaining rental property, including property management fees, repairs, and mortgage interest payments.Additionally, for those investors holding properties in Germany for the long-term, the country's capital gains tax law is attractive.

Hey All, I’ve found an off market duplex in need of some repair (estimate unknown as I haven’t been inside yet).

This can cover unexpected vacancies or repairs.

I am invested in a small multi family in TX and the management was not able to fill the property and do repairs and the income has dwindled badly.

Just my views and thanks again for this explaination of this technique.

You will have holding costs along the way with repairs, maintenance, taxes, etc.

She said she has had to pay out-of-pocket for exterminators and plumbers after getting no response to pest and leaky-pipe complaints to RAD’s property managers.Another tenant of a Mendenhall-led fund, Terry Golden, 41, said he has been dealing for about a year with a flooded basement that his property managers have neglected to repair at his 880-square-foot home in West Philadelphia’s Haddington section.His living and dining rooms are piled high with belongings he’d previously been storing in the basement: furniture, appliances, trophies from his days coaching little-league football.

I just go in at the first of every month and code each line item to the corresponding property and note what the expense was for (Repair, HOA Fee, Mortgage payment, etc).

It's also rare you buy these properties with 20-25% and have NOTHING you need to address almost immediately in terms of repairs or capex. 

It's a good practice to overestimate costs and underestimate after-repair values (ARV) to keep your expectations realistic.