If you have just one or two properties and something goes wrong ie. vacancy, HVAC replacement etc, you'll feel the pinch a lot more than you would if you have other properties in your portfolio offsetting an under performing one.

You need to do an analysis of the common elements, their expected replacement values, and compare it to their budget and reserves.

It needed complete interior rehab, septic system replacement and pool resurfacing.

had to learn about septic tanks, needed replacement.

Replaced the front porch cover that was in bad shape.

The calculation for calculating NOI for a NNN leased property is a follows:Rental Income+ Reimbursement Income (Tenant reimbursing the landlord for operating expenses)= Subtotal- Vacancy/Collection Loss (% Applied to the subtotal)= Effective Gross Income- Real estate taxes (Typically reimbursed in a NNN lease)- Insurance (Typically reimbursed in a NNN lease)- Maintenance (This will depend on if single-tenant building or multi)- Utilities (Could be nothing is single-tenant building)- Management Fees (Typically reimbursed in a NNN lease)- General/Admin Expenses (Typically reimbursed in a NNN lease)- Reserve for replacement (Tenants do not typically reimburse for this)= NOINOI/Cap Rate = Market Value

I got a tri-plex in San Antonio that has the replacement cost set at 260k.

My area it is $6 sf to replace. $6000/10 year life span/12 months in a year= $50 per month for flooring capex.You won't be able to replace the roof 25 year life span, appliances and hot water heater 12 year life span, hvac 20 year life span, bath and kitchen remodel 20 year life span.

Even if doing replacement of some big ticket items upfront I would still budget a minimum of 5% for each of them especially on a higher end property such as this that requires good upkeep. 4 of the main benefits of a buy and hold property are below and just because you are not getting all of them in the same property does not mean that particular property is a bad deal, but for a property of this value it is too expensive for the relative returns provided.- Cash Flow- Appreciation- Principle Pay Down- Tax Benefits

We know the 1031 relinquished and replacement properties must be titled to the same taxpayer, so the question is whether we should retitle the land to a new LLC before closing the sale to relinquish, or if we should 1031 in her name and transfer to the LLC after closing the replacement sale.