I am not beeping harsh as she requested additional eyes which was good and she was receptive to inputs… I consulted on one today that had 95% LTV OO but no PMI, 2% vacancy as self managed including delinquent rent and tenant turnover, a maintenance/cap ex that was based on percentage but was a quad and her allocation was ~50% of my estimate, and no PM even though she intends to move away in a year or so. 

I would look hard at the comps to see what makes sense.From there, I look at the cost of vacancy.

Here are the details of the property:- Leased until July 2025: $1400 and $1450 per unit per month- Built: 1930's- Zoned O-2Information in the Rental Report:- Vacancy rate: 5%- Purchase Price: $310,000- Repairs and maintenance: 7%- CapEx: 5%- Property tax: $3,600 per year- Insurance: $2,400 per year- Roof: Broker mentioned it doesn't need immediate attention but will likely need replacement soon (~$15,000).- Cash flow: The report shows a $177 monthly cash flow.- Condition: The house is completely renovated.

Take your monthly rental income and then subtract ALL your monthly expenses: Mortgage, Interest, Taxes, Insurance, Property management, utilities, vacancy factor, maintenance/repairs, etc...

That’s not how I do my business.Should I pull the property off the market and stick with him and deal with the vacancy when it actually happens?

My bills on the house are around 900 a month including vacancy reserves.  

What is the vacancy rate in your market? 

Quote from @Shelly Glennon: You haven't had a vacancy for 40 years, the tenant is willing to sign a new lease at market rate, and you're complaining about paying a commission?

Thanks again for your response  He's being facetious.You absolutely need to set money aside for capex/repairs/vacancy. 

Renting out the house doesn't sound like it will make money or break even every month, once you account for vacancies, maintenance, increases in tax/insurance, and turnover costs... unless I'm wrong there?