But you can purchase any type of replacement investment real estate. 

My area it is $6 sf to replace. $6000/10 year lifespan/12 months in a year=$50 per month for 1 item in a capex budget.

A simple electric panel replacement would wipe out months of net cashflow.

Also, I've been blindsided by special assessments, $10,000 at one time for a roof replacement.

Hello All,I am looking to get my property into tip top shape and replace overgrown plants, add pergolas, and just overall just beautify the space.

Can we finance the purchase of the replacement property using the $250,000 in exchange funds as the down payment for the loan on the new property?

The conservative way to budget Capex reserves is to look at estimated remaining useful life of each item: roof, siding, windows, kitchen, HVAC, water heater, bathroom, fences, gutters, chimney linings/tuckpointing, foundation items, etc, and assigning a replacement cost divided by remaining useful life.  

I generally pay $1000 for a 1 to 1 plus $250 each additional replacement.  

It took some time to find the replacement property but after we have completed renovations, our cash flow will have doubled, equity has grown and it will be easier to manage.Best of luck,John

The second unit we replaced the kitchen, one bath was previously remodeled and the other remains in upgraded condition.