2 are not cashflowing with the required expenses for vacancy at 10%, repairs at 10% and capital expenditures at 5%.

I am not sure if I can put zero for capital expenditures, since it is new construction."

If they fail to comply, you may need to involve legal counsel or contact your state’s real estate commission.Hire a Reliable Manager: Finding a professional, responsive property manager is key.

I am not sure if I can put zero for capital expenditures, since it is new construction. 

Would love to hear your thoughts on whether pursuing this adjustment makes sense or if I should reconsider.For reference, I’ve included the following assumptions in my calculations:5% for maintenance3.5% for vacancy10% for capital expenditures and management feesThanks! 

If I choose to flip, the amount of capital expenditure and interest could be too much for me.

Rank them from worst to best in capital expenditures expected*optional, not always necessaryAdd those numbers together for each property.

For instance if I’m looking at potential capital expenditures over the next 5 years and the range of the cost is between $25k and $75k, I would use $75k in my projections.

As the investor gains experience, they are not only able to more successfully foresee the “bumps” along the way, able to handle recessions, temporary negative cash flow, unforeseen capital expenditures without panicking, but will also recognize the opportunities necessary to turn a loss into a break even.

Accurate records of all expenditures are essential to claim deductions and calculate the cost basis for future capital gains taxes, including depreciation recapture.This post does not create a CPA-Client relationship.