One of the biggest challenges I see with investment property owners is making sure they have enough cash reserves on hand for their building. Buildings age and systems wear out and need to be replaced. A new roof can suddenly set you back $30,000 - do you have that in your cash reserve fund available when you need it? I suggest you set aside at least 3-5% of your gross revenues as a Capital Reserve Fund. Most bank underwriters will require at least 2 or 3% allocation toward Capital Reserves when reviewing the Income and Expenses of an Apartment Building. One of the Apartment Portfolios we manage has a CMBS (Commercial Mortgage Backed Security) mortgage on it that requires $1,500/month to be put into an escrow account (that they manage) for Capital Reserves. We can only draw it out AFTER we prove that the capital improvements have been done (they send out an inspector to verify). Recently, the elevator went out at one of the properties we manage. Suddenly the owner was looking at needing a new elevator for $50,000 or at least spend $17,000 to get it working again, but it will still probably have some problems. The building inspectors don't like it when things in a building are not functioning as intended (nor do your tenants). Please make sure you have enough cash reserves available for your building. I would be happy to discuss with you how to develop a capital reserve plan for your property so you can plan the cash reserve needs to ensure long term success with your investment.