Then divide that cost by the amount of time between now and then and that's how much you should be putting aside for Capex.For general maintenance, the age and condition of the building will play into that.

with that said, should you increase your down payment to mask flaws in an otherwise terrible deal - an alligator that will eat you alive with deferred maintenance that is in a worse neighborhood than you think, but an agent sold you on it because it has new countertops? 

As such, they want to repaint, have some deferred maintenance that needs handled in next several years, and therefore pause distributions to LPs, to fund those additional improvements out of operating cash.  

You will only be entitled to the deductions directly tied to the property, such as interest, taxes, insurance and maintenance. 

If you routinely try to get the next tenant in so quickly after the last tenant, perhaps you can add a penalty to your lease for holdover tenants.

In reality, most older homes will cost you considerably more in maintenance, capital expense, and vacancy (people just generally like to live in and rent newer homes).

I run sum numbers for you please see comments below before refinancing and post refinancing .If I were in your position, I would approach it as follows:Initial Investment Assumptions: Market Value: $360,000 Purchase Price: $360,000 Equity: $0,000Financial Breakdown: Hard Money Loan (LTV 100%): $360,000 Interest Rate: 10% (30-Year Amortization) Monthly Payment: $1,995Upfront Costs: Origination fee (1%): $3,600 Closing Costs (3%): $10,800 Renovation Costs: $10,000 2 Month of Carrying Costs During Renovation: $5,390Total Upfront Required: $29,790Total Capital InvestmentPurchased price $360,000 Upfront Costs $29,790Total: $389,790To make this investment work, you need to rent the whole property for at least $3,165/month, refinance it let say after one year with 5% interest with a traditional mortgage.Year One Rent: Monthly Rent Income: $3,165 Monthly Rent Losses during renovations (2 Months): -$6,330 (-$527/month distributed over 12 months) Total Rent Income: $31,650 per year => $ 2,638 per monthMonthly Expenses: Hard Money Loan Payment (10% Interest): $1,995 / per month interest only Property Tax (Assuming $3,000/year): $250 per month Property Insurance (Assumption): $100 per month Utilities (Hydro, Gas, Water): $292 per month Assuming 0% Vacancy first year Assuming 0 % Repairs & Maintenance first year because unit has been recently renovated Total Monthly Expenses: $2,637Monthly Net Cash Flow: $1Post-Renovation Refinancing Strategy:So far, we’ve purchased the property, completed renovations, and rented it out.Next, you can approach the bank for a refinance to consolidate your initial investment of $29,790 plus your 360k debt into a mortgage.

@Isadore Nelson Yes, eviction is possible, but there are too many factors that need to be taken into consideration, active military family members, disabled veterans, building violations, maintenance issues and etc...

Third, check your state's civil laws to determine if maintenance costs can be assigned to the debtor by the lien holder. 

This affords us excellent cash flow and lower maintenance on a 3-5 year commercial lease.