And that’s not including your other payments for taxes, insurance, capital expenditures, vacancy and other variable landlord expenses.

@Jason RuelloAs said below, 5-10% of monthly rent should be allotted towards TRR (treatments, repairs, replacements).To get a more accurate number or capital expenditures, you can examine the age and state of major items of the house such as the roof, HVAC, water heater, etc.

Cash on Cash ReturnMortgage$1,244.68Down Payment$75,000.00Property Taxes$150.00Closing Costs$0.00Home Insurance$125.00Refurb Budget$0.00Property Management (12%)$0.00Misc Other$0.00Vacancy (5%)$70.20Water/Sewer$100.00Garbage$20.00Electric$0.00Gas$0.00HOA Fees$0.00Lawn/Snow$0.00Mortgage Insurance$0.00Repairs$150.00Total Investment$75,000.00Capital Expenditures$150.00Annual Cash Flow/Total Investment0.0944196Total Monthly Expenses$2,009.88Cash on Cash Return9.442

Some Turnkey Providers rehab correctly and look at all major components so you don't have any Capital Expenditures (CapEX) for a pre-determined amount of time. 

But when I run the sample numbers these properties are always coming back less attractive than the others (even when accounting for additional expenditures on the properties that will need some type of work sooner than later).

At the current price and rents it seems to be a 16% cash on cash return on the $70,000 down payment but that doesn't include capital expenditure or vacancy.

., some units have already been upgraded and are achieving rent increases)Experienced team, particularly the project management teamMultiple exit strategiesThe budget for renovations and capital expenditures is raised upfront, rather than through cash flowValue-add investments can be powerful vehicles of wealth, but they also come with serious risks.

If not, you will need to budget for upgrades / capital expenditures later.

The IRS requires this on any larger capital expenditure so they can avoid large tax losses in early years. 

Then if you know of specific future capex expenditures, you can use inflation to forecast roof replacements, etc. in 5 years or whatever period makes sense for the property.