Obviously, tax planning/estate expenditure will also be driven by how much you wish to leave for heirs.If you do plan to sell, perhaps the time to do it, will be when your engineering income goes to zero to help minimize tax hit (and perhaps that is when you need cash).General retirement wisdom seems to be to keep 1-2 years cash (near cash) buffer of expenses... then you are less likely to have to sell in poor market conditions.I also like the diversity of fairly broad index funds and ETFs (costs can be as low as 0.05%).

You get depreciation and write offs for capital expenditures but don’t forget recapture.  

How do they conduct maintenance, capital expenditures, and semi-annual to annual checks?

@Sean McGradyTurnkey property you’ll need a down payment + closing cost + furniture and 3-6 months of mortgage payments or the cost of your most expensive capital expenditure

For the vacancy I put in 5%, for repairs i put 7%, for capital expenditures i put 5% and for management fees i put 9%.

Managers should agree to secure prior approval of Owner for all expenditures in excess of a certain dollar amount.

I am new to investing, so generally when I am calculating single family homes I include 5% for repair and 5% for capital expenditures, amongst the other expenses.

What you should do is call this place as an interested buyer and ask for a few things to validate the numbers you're putting into the model, such as their rent rolls (you will see if collectability or vacancy is an issue), historical costs and income statement if available, and any large capital expenditures that are coming up.

(Reserve)- $76Operating Expenses- $613Net Operating Income$1,026Capital Expenditures (Reserve)- $66Total Unlevered Cash Flow$961Mortgage- $668Total Net Cash Flow$292

I’ve seen data for a couple mature vacation rental markets and that 2007-2009 era barely affected any of them some even grew in tourism, travel expenditures, and lodging.