These expenditures are capitalized, meaning they are added to the property's basis and depreciated over time.Examples of Capital ExpendituresBuilding Additions: Adding a new room, deck, or other structural improvements.Major Renovations: Remodeling a kitchen or bathroom, replacing the roof, or significant electrical and plumbing upgrades.Appliance Replacement: Installing new HVAC systems, water heaters, or other major appliances.Structural Repairs: Replacing the foundation or significant repairs to the building’s structure.Labor CostsLabor Costs: The costs paid to contractors, electricians, plumbers, carpenters, and other professionals involved in the renovation are part of capital expenditures.Example of Capital Expenditures with LaborSuppose you renovate a rental property, including a new kitchen and bathroom.Materials: $15,000Labor Costs: $10,000Total Capital Expenditure: $25,000This $25,000 would be capitalized and added to the property's basis.

Purchase price: $300,000 Cash invested: $10,500 My first investment.

@Ali S.What's the monthly cash flow for each of these properties? 

The stove & hot water heater are currently electric. 

I realize that selling a cash flowing rental is open to criticism.

Purchase price: $690,000 Cash invested: $300,000 6/6 two family detach house in HOA at 77 monthly.

If you can positive cash with today's interest rates, and you buy in a growth market, then you'll have a winner.

Very quick and simple read that boils down the importance of investing in cash flowing assets such as real estate.

You only really have a couple of options.HELOC/LOC with the property as security.Refinance the first and walk away with a bigger first.A great way to get into properties with little money down though is to buy distressed assets at a discount, force appreciate them, and refinance to pull the cash out.

One of our rentals (Michigan) has been being rented for $1300/month, the mortgage is $618 so it has cash flowed well.