I did not see a statutory definition of "normal wear and tear" under Florida laws after only a very brief search, however the legal definition in Texas is:"Normal wear and tear" means deterioration that results from the intended use of a dwelling, breakage or malfunction due to age or deteriorated condition, but the term does not include deterioration that results from negligence, carelessness, accident, or abuse of the premises, equipment, or chattels by the tenant, by a member of the tenant's household, or by a guest or invitee of the tenant (Tex.

My response however is, don’t sweat the small stuff.If you’re going to be in the rehab business, or pretty much any business, you have to plan for and expect the unexpected.

Some rental markets are more volatile than others, some expenses may increase unexpectedly, you may decide to change the way you manage a building all of these can change your cash flow.Break even also allows you to understand at what level a property must perform in order to achieve a certain level of profit.I throw this out because it something that can be modeled and potentially be made available to members that might be interested.

I came on here for advice not negativity.He was simply saying that it would be in your best interest to move towards what you want to do before the market turns around and missed the boat or something unexpected happens that makes eventually more like never.

:cry: That was unexpected.

I recommend that a 15% of total rehab budget be tacked onto the budget to cover the unexpected and/or the increased costs of items.

That would let you keep more capital in the event that you run into unexpected expenses.

Hi.I am looking for a smaller, around $50,000. line of credit to be flexible for down payments, construction cash, and/or just to have in case of unexpected repairs. 

unexpected expenditures may mean that your renovation is off schedule by about 6 -8 months What do you do?

Individually Metered Units where tenants pay utilities.TX VA Loan 200k @ 3.5% = 900/month2012 Taxes $2,137 = 178/month3 units Rented(650,650,750) = 2050/monthInsurance 1% of Value = 165/month--------------------------------------------------------Cash Flow = 807/monthI do have 25k to cover vacancy, unexpected repairs etc.