We charge each unit a percentage of the water bill based on the size/configuration of unit.  

The benefit to me as landlord would be that I don't have to pick up quarters anymore (or less of them because machines can be configured to accept coins or electronic Clear Token payment), revenues direct deposit to my operating account once/month net of a $5 monthly fee, and there is an owner dashboard where I can login to see where my month's revenue stands.  

Obviously, you would have these requests if you manage your own property too, but at least you wouldn't be paying management fees for the privilege.This isn't to say that having full service management is impossible in your proposed scenario; I have seen your exact situation work well well in a number of cases, but it takes a ton of self-discipline to look your neighbor in the eye and tell them to call the property manager for all their questions, concerns and requests and, (in my experience), usually there was some other circumstance as well:  Owner or tenant traveled a lot, owner or tenant are naturally very private and sought no relationship with their neighbor, the property was configured in such a way that the owner and tenant rarely saw each other, etc.So, like almost everything in life, a decision like this is going to take some self evaluation.  

Since that street was messed up and my yard was configured oddly a normally $800-1000 fix was $3000.  

Market value is meaningless when the bulk of the return will come from cash flow and when the resale of the asset will be to another investor who will be holding for cash flow.I have a feeling Ben will agree with both of these statements above (correct me if I'm wrong, Ben)...So, Bob, if you're going to argue that cap rate isn't a good measure of return for one particular type of cash flowing asset (in this case, single family rentals), you're going to have to justify it better than just cutting and pasting someone else's ideas.Please tell us why you (not others) think cap rate is suitable for analyzing/comparing the return of all other cash flowing assets, but automatically breaks down for single family cash flowing assets (or if you think it breaks down for other types of cash flowing assets, please tell what other ones it's not appropriate for).To say that a mathematical model breaks down based on the physical configuration of the underlying asset (one unit versus many units) doesn't ring true for me.

Depends on the fund's management configuration;>Ground up construction requires a different scope from typical value add>Timeline is longer longer duration >More moving parts means more failure points; lending, land acquisition, site package, permitting, inspections, construction, lease up team >Construction management required; cost overruns, change orders, agreement  

Pro-forma rents has the numbers working out well for the type of configuration it is. 

We picked up a rental back in November last year in the Inland Empire 2/1 1200sf, with the income being about $2200 a month for that side and configure of house.

Vacancy rate is the percentage time that you are not receiving income from the property because you don't have it rented. 8.3% is equivalent to 1/12, or one month per year that the property is not rented and therefore you are losing income.You can configure each year as you wish...I assumed one month the first year (8.3%) and then slightly less in subsequent years (7%) because you've gotten the property into rental condition already.Does that answer your question?

It is configured where putting a real mattress in was impossable.