Using the 50% rule (taxes, insurance, Capex, maintenance, vacancies, property-management), that should give us ~19K/month in pre-tax profits that achieves our 10k/month financial goal after-tax and adjusting for inflation.Our assumption is that building new-construction would reduce capex & maintenance the first few years. 

Depending on long term gain, sometimes paying $350/mo is not bad (until you have repairs and or vacancy).

If you're looking to cash flow, you'll want to be mindful of the higher DOM vacancy possibility and expenses as a result. 

I suspect you do not want to go to 100% vacancy.If you are raising rents a small amount, that is less important.If you are putting them on a lease, make sure your lease-end dates are staggered so that you don't, by chance, end up at 100% vacancy.

This compensates you for any potential extra vacancy time during an off-season turnover.

Hello Misael, I would do a thorough market research to verify that you can get the rent increase you want, you might find out that the market is oversaturated with rentals.If you are trying to raise the rent $100/mo, 1 month of vacancy ruins your rent increase for the whole year.I would list the property for lease 45 days before your tenant's lease expires, if you have your property priced right you should get some applicants before your lady moves out.

Your calculations don't set aside anything for vacancy and maintenance expenses.

Check AirDNA to get an idea of daily rates and vacancy rates. 

Note owner occupied does not have vacancy, unit turnover costs, and typically has lower maintenance and cap ex costs.

The rents might be slightly below market, but to have the state paying the rent would be worth it and a zero vacancy rate for 5 years will compensate.