Needless to say, that a deal that looks fine at 10% EV, looks very slim at 15% EV and barely breaks even if expenses or exit cap rate is increased.The last 3 years were within 10% threshold though and that trend may continue.Hence my question: is 10% a "new norm" or should I throw it out and use at least 13% in my underwriting?

The chance of you getting paid is slim to none, and slim just left town. 

The Memphis market is going thru an investor boom right now, so it is slim pickings here.

From the little I know, you want that property to be an acre and preferably on a corner lot, otherwise your odds of landing someone are slim to none.

Before you attempt this consult your command JAG officer for advice, It's free , and if by slim chance they sign off on an opinion letter, it may help if you find yourself in legal trouble.

Many newbies overlook this in underwriting.I know it is exciting submitting an offer, however, this deal looks slim with no margin of error, which I personally would pass on.

The cash flow margin feels so slim. 

@Thomas Stanley I second the recommendation to keep the security deposits in a separate account, if only to keep your bookkeeping and record keeping easier.Also, this is an unlikely/slim chance, but if you were ever asked about, in eviction court, how you handled the security deposits, I think it's a mark of professionalism to have kept them in a separate account.

@Andrew Martherus: multifamily inventory is VERY slim in the Phoenix area.

However, I just renewed my lease so the chance of me doing a live in project is slim until a year from now.