Think 20+ year old HVAC systems and water heaters....roofs patched with tar instead of shingles, etc.I didn't see Vacancy or Capital Expenses included in your budget affecting cash flow. 

Items like lumber, insulation, roofing would be categorize as hard costs.

Inspections revealed that this "Move in Ready" home that only needed cosmetic work (as described to me by the listing agent) actually has a roof that is barely hanging in there, a chimney that's nearly about to fall, and I need to replace 4 boilers.

Still need to budget for roof 25 year life span, appliances and hot water heater 12 years, hvac 20 years, bath and kitchen remodel 20 year life span.

New metal roof New gravel driveway New shed and pump house New deck Exterior paint New electric panel Rv pad with water sewer and electric hookups Interior: flooring, Sheetrock, paint, painted kitchen cabinets, hearth, windows and doors, bathrooms, walk in tile shower, mowed entire 7 acres.

I just received a copy of the previous inspector's report, and there were some plumbing/electrical issues (that supposedly have since been fixed), high moisture in some areas (so we will need to do a mold test), and a roofing issue on the carport, as well as some wood rot and a few other issues.  

I used the technique of giving the sellers two options, one was they give me the $20,000 off and I do the work, or two they fix the roof and HVAC and I'll pay asking.

The exit fee could be if you sell it they get X% of the profit, if you cash out refi, they get a flat exit fee once that happens.

Replaced the flooring and lighting throughout the house, painted and replaced the roof.

Replaced the roof.