CAPEX are amounts that you will be setting aside to cover various items that you expect to replace over time (your expected hold period).

We made sure we covered every single basis and worded it as you described above.

Being new to this I am estimating based on numbers I'm seeing from the BP calculators and from other posts I see for these kinds of things, trying to account for all eventualities as a "conservative" estimate hoping that I would have  expenses to cover the unexpected.I also appreciate your advice about managers and using a handyman as a proxy, paid hourly.Account Closed - Definitely not an equity play, just trying to understand how to make these numbers and deals make sense.

You have most things covered.

You can get a cheap residential loan and the other rents should cover your mortgage. 

There maybe a little room to raise rent, but it is unlikely to cover all of it (and that is not accounting for any future expenses, such as capex or maintenance).

There maybe a little room to raise rent, but it is unlikely to cover all of it (and that is not accounting for any future expenses, such as capex or maintenance).

For example, a slip and fall suit will be covered, but if there was structural damage across all of them or like asbestos or something, they won’t.You can probably only find out if you agree to purchase or maybe go speak to someone at the property.

The wife has intentions of selling the house to cover the nursing home stay of the aunt and her husband.

□Do you have an umbrella liability insurance policy that covers your entities and you individually (either directly or as an additional named insured)?