I still use the 1-2% rule when putting an opportunity through the good ol napkin test. 

There are certain Minimum Property Requirements the home must meet - the short is that it must be safe, structurally sound, and sanitary; ugly is fine.My suggestion is, if you are unable to find a good MFH to purchase.

Landlords here in WA and other states I'm sure are required by law to provide decent, safe and sanitary housing. 

I would consider this actual conservative underwriting and using a percentage-based approach as more of a "back of the napkin" type starting point to see if it's worth doing a deeper dive, and nothing more. 

Have you ever thought about a bar and grill, with a main room bar and a 2nd smoking lounge bar.You could call it "The Poker Room" and have a cards theme to it.Dark wood, low lights, lots of alcohol behind the bar, with bartenders in uniforms.A secret entrance in the back from the rear of the building, stars go right down to it.Pick a radio station aimed at a particular audience and advertise there to attract sames (birds of a feather).Bring in a live band (that matches the clientele) once a quarter and advertise that (all the bottled beer they can drink plus a kicker of cash for appearing).With ultra sanitary restrooms.Basically a speak easy type of bar.

in all reality, in WI if the buyer and seller are not licensed you can literally write out a contract on a bar napkin, not saying you would have protection if a dispute came up. that being said, if the 2 parties agree put it on paper, I recommend a meeting at the title company you will be using, they can help you with forms and some guidance on how to complete them, they usually dont charge a fee as they will collect a fee for title insurance, closing fees, ect. 

Yes you are right - on the back of my napkin the cash flow numbers are good, especially if I can attract the older more mature graduate students who might have the income to pay a premium.

Lets see how much really changes (in say 20 years) for the people they claim to want to help.I'm guessing many of these have loopholes in them and will just be used to gin up some new state government agency to further bleed tax money from the working peoples pockets.I'm also guessing that the people they claim to want to help will not really have much change (if any) in their daily lives.Fix the problem = no more problem = no more tax payer money to fix the problem.If Maryland wants to really help people,they should compete in the market with Public Housing and learn the fundamentals of this business, while offering safe, sanitary, affordable housing to those who need it.Things like build special low rent high rise communities for those just out of incarceration until they find good paying steady jobs, and build up a good credit history, and save enough to be able to afford renting a (nicer) apartment from a private owner (vs forcing the recidivism problem on owners).Do logical things to make a real difference in peoples lives vs regulating the free market.Just my 2 cents!  

Lots of folks have gotten stinking rich just by doing correct addition and subtraction on the back of a napkin.....or counting on their fingers.

To do some quick napkin math I'd recommend using a conservatively high interest rate and simply look for a deal that will be above 1.0 when you divide gross monthly rents by estimated PITI (principal interest taxes and insurance).