Located next to a newer Walgreens, Ruby Tuesday and popular liquor store with an Applebees, Outback Steakhouse and Starbucks nearby.I was being what I feel is conservative and estimating $7,000/yr for repairs and another $10,000/yr for CapEx, plus $2,000/yr for snow/lawn care and 8% vacancy allowance or $8,200/yr.Any advice, tips or suggestions would be greatly appreciated!

I am now down to $900 -$950 and still have a vacancy every year or so. 

It is more appropriate in cases where the vacancy rate far exceeds the local market vacancy rate.Good luck 

Repairs, vacancy, and capex should be closer to 30% total. 

If you can cash flow and keep vacancy low, then maybe don't do anything at all. 

Purchase Price: $400,000 with 5% downCurrent Market Value: $465,000 (selling directly to tenants will involve no agents)Current Rent: $3000/monthWith increased property taxes over the last 3 years, our monthly cash flow is down to only about $90/month factoring in vacancy and maintenance. 

Cash flow is gross rent - 30% (vacancy, maint, and capex) - PITI = cash flow.3. 

Hypothetically if we were to add a kitchen it would require additional investment (cost of additions and expenses related to tenant disruption as the property is currently occupied by a good tenant, potential vacancy, etc.), which does not make financial sense in this particular case and won’t offer a return in a foreseeable future.

Expenses like CapEx, maintenance/repairs, management, and vacancy dig in to what cashflow you thought you had over the long haul.

would be appreciated - my numbers for this property are here below:Market Value $320k; Zillow says the home value will stay the same for the next year though (it has tapered off in the last year)Remaining Principal: $110k5BR, 3BA + Basement, 2500 sq ftCurrent Rent: $1950/moExpenses: $1900/mo (5% vacancy rate, estimated expenses, $500 HOA, $4800 in property taxes, $1800 in insurance, $900 P&I included)Located in Suwanee, GA:Great Schools Rating: 9 (High School), 8 (Middle School), 10 (Elementary School)Niche Grade A+; Public Schools A+, Jobs A, Crime/Safety B, Cost of Living C+24% Rent, 76% Own#2 Best Public Schools in Georgia#5 Best Place to Raise a Family in Georgia