Once you account for kitchen supplies and a never-ending list of small things around the house, you can easily allocate $2,000 to the overall supplies category.Appliances - if you’re lucky, your property already comes with everything included.

@Andrew LentzI'm not sure what your experience is in Corporate America, but you might want to allocate some of your mental bandwidth for adjusting to this brave new world you are about to enter.

I would allocate this money the following way, but not invest all of the money at once.

He uses mortgage ETFs “sparingly,” mostly in tax-advantaged accounts, and recommends that investors don’t exceed a 3% to 5% allocation to the sector.

For further details on this parameter, please consult our user guide.We have allocated a budget of $15,000 for renovations / refurbishments.The purchase price of a 2-bedroom / 2-bathroom unit in this area is $498,000, with 5% of this price allocated for closing costs.A turnover cost of $175 per booking has been factored in, with no rental management fee assumed, indicating that you will manage bookings and cleaning services independently.The mortgage rate is set at a fixed 7% per year, with an 80% loan-to-value ratio (LTV) and a 20-year term.For the remaining parameters in our financial model, please refer to the image above.Taking these values into account, below are the results of the financial case study.Some insights:The results show the anticipated performance of a 2-bedroom / 2-bathroom unit in the southwestern area of Okaloosa Island, Florida.Expected gross revenue amounts to $78,240, derived from 47 bookings with an average stay of 5 days at an average daily rate of $325 (inclusive of cleaning fees).Total yearly expenses add up to $68,014, encompassing various costs from private mortgage insurance (PMI) to property taxes and annual loan repayments.The cash required for this deal totals $139,550, incorporating the 20% down payment for the mortgage, 5% closing costs, and the $15,000 renovations budget.Pre-tax net revenue stands at $10,226, representing a 7.33% cash-on-cash (CoC) return.The annual return on investment (ROI) is 1.9%, excluding value appreciation.

You should allocate part of the purchase cost to land, and I just randomly took 20% to land.

You cannot "steal" from one element's allocated reserve to pay for something else deemed more important at the time, because the element you steal from still has it's own timeline to follow.Regarding your railings, I doubt this was a real surprise, particularly if Insurance was requiring it as well.

Allocation of rent.

.- There exists an elite class of people who can decide for "the masses" the proper allocation of resources to result in the maximum prosperity.Absent tyranny, the correct decision about when someone has accumulated "too much" is made by that person who accumulated it.

I also think sometimes people underestimate or don't properly account for longer term cap ex costs so there is some money allocated there as well (maybe more than some people allocate).