It was built in 1950, and does need some internal remodeling but overall does not have any major issues.

I have a major delimma.

Assuming no major repairs come up, the $120/mo in CapEx would go toward this and we'd do it in a few years.Re: lawn care - this was such a helpful call out, thank you!

You should take each major item (roof, HVAC, exterior paint, etc) estimate replacement cost and lifetime and use that as Capex reserves.

I have identified many empty lots in a transitional area just outside a major metropolitan city.

@Allen Li the market as a whole is super competitive with the majority of the world sitting on the sidelines last year everyone has capital ready to use.

The home was built in 2018 so the major items on the home A/C, roof, water heater all have more than enough life expectancy left. 11/month HOA, 4,000/month CDD.

Then you have expenses for when the property is vacant for when you do your remodeling, changing the floor plan, ow whatever you mean, adding a bedroom, bathroom and this is going to cost you major money and a major loss for rental income.

You need reserves to invest in RE... so if you don't have the down payment how will you take care of a major repair?

The same thing seems to be happening in other areas where folks are getting the green light for continued working from home, and flocking from major metro areas with high costs of living, to areas where they are able to buy (while interest rates remain low) for the same amount of (in some cases) cheaper than rent- again driving up purchase price point and your % all in changing.