Check out this deal I found on CL

[Will K]

Scanning CL for real estate deals, I came across this one:

http://washingtondc.craigslist.org/nva/reb/3442474249.html

It’s 69 townhouses (each has 2-3 units in them, I assumed an average of 2.5 units per property, so 173 units total) for $3,000,000 in Baltimore. That’s about $45,000 per townhouse, or $17,500 per unit.

I don't know if I agree with their rental rate assumptions, but even if you could pull in an average of $750 for each unit, I came up with a CAP rate of almost 30. This deal crushes the 2% rule, as each unit would pull in 4.3% of its value monthly.

This is taking into account a 8.5% property management rate for the whole enterprise (roughly $100k a year, I assume you would hire two people to be full-time managers). I also assumed a 75% occupancy rate and a 10% maintenance rate.

If only I had $3,000,000 laying around…