On the sample report, I didn't see eviction expenses, court costs, entity maintenance, excessive damage done by tenants (above and beyond the security deposit), etc.

Operating expenses also include management (whether you do it or not), maintenance, advertising, vacancy allowance, office supplies, legal fees, evictions, court costs, utilities paid by the owner, lawsuits, fuel for your vehicle (going to and from you rental), damage caused by tenants in excess of the security deposit, etc, etc, etc.

The condo conversion fad is over and in many areas there is an excess supply of condos.BTW, buying 30 units at $100K per door and selling for $200K per door does not give you $3 million "net".

Excessively marking up the service or product is gouging.

If the net from the sale is more than the mortgage balance, the seller gets the excess.

& the excess volume of water/waste can & will back up with a lot of hydrostatic pressure via the easiest route.... your basement.

Portfolio lenders rarely require the use of a property manager or keeping excess reserves in the bank outside of a possible tax and insurance escrow.

More Info: She has done a refi already and has a 2% hemp loan.

Normal wear and tear is covered by the lease, however excessive damage is not.

Not sure exactly how this is handled in a Subject To, when you refi under your name b/c the old mortgage and if there is an escrow account, it's possible that any excess funds at payoff may be refunded to the original mortgagee and not you!