My dilemma is replace the exterior items (which I can't really raise rent for).

Be 1-1.33 DSCR, ideally 1.2 ish range with capex as a top line not bottom line item. 50% net cash flow= reserves, 50% net cash flow= investment #2.

Soon with raising prices, repair costs/labor costs going up each year, HOA, Taxes, and all other items you will soon be negative.

Here's a quick list we use when advising clients:Avoid septic if possible (higher long-term maintenance)No power lines or flood zones (hurts resale/rentability)Good school district and low-crime zip codeNo HOA or landlord-unfriendly restrictionsBuilt after 1980 to minimize major capital items (plumbing, electrical, HVAC)Single-story brick homes rent well and cost less to maintainFor a deep dive, check out the BiggerPockets books “The Book on Rental Property Investing” and “Buy, Rehab, Rent, Refinance, Repeat (BRRRR)”.

There are items you can research which will give you a better understanding of what drives costs, but I don't know how much that will impact your investment decision.Check your property assessment.

Operating ExpensesInclude estimates for:Property taxesInsuranceProperty management (if applicable, and I would reccomend budgeting 10% of monthly rent for this fee )Maintenance/repairsVacancy allowance (typically 5-8%)HOA fees (if any)Capital expenditures (CapEx – reserve for big-ticket items like roof, HVAC)4.

Also add items to your lease that are particular to your property. such as parking, number of vehicles, cameras, pests, lawn care, renters insurance required, whatever.

Items that correlate to rent growth are the same item that correlate to appreciation: diverse economy, population growth, rising wages, supply/demand especially constraints on supply, etc.2) do not make the mistake of thinking residential real estate (RE) is passive.

.✅ The Deal Numbers – Include a breakdown of:Purchase priceEstimated rehab costs (line-item budget is even better)After-repair value (with comps)Your profit projections✅ Photos – Before photos, neighborhood shots, and sample finish ideas if you have them.

Thank you.Get down to brass tacks: Your investment model does not account for the line item expense increases you are seeing.