It ignores vacant unit, clean up and marketing between tenants, eviction costs, damage, routine maintenance like the roof, hot water heaters, appliances, lawn care, snow removal, etc etc etc etc that are all real costs whether on an annual or some other recurring basis.In most places, if you can offer an investor a property with little deferred maintenance that is generating rents at 2% of purchase price, they are going to jump all over it.

I have a lawn care business, web design business and 49 units.

Prospective buyers ask about things like "Well who mows the lawn ?

Government has involvement has only raised prices (artificially) and kept the wheels of capitalism from turning.

Then there's lawn care, CPA/attorney costs, termite treatments, etc.

I agree with the earlier comment that your your property management estimate may be a bit high; if you are completely re-habbing the property, then the forward-looking repair estimate may be all right.One consideration is that your property taxes will probably increase as a consequence of your re-hab.I'm wondering of you've considered all of your potential opersating expenses -- lawn/snow, trash removal, electricity for common-area lighting.

About 65 million years ago when I was a kid I mowed a neighbors lawn free and told the man if you like my mow I will come back every week for you for 10 dollars.

Contract Services: Pest control, Lawn Sometimes seller slip and leave expense out.

However, they have let me review in advance, ask questions, add a few things (lawn care is tenant's responsibility, for example) and have addendum specific to the property if I want.

It has a pool and that $1300 a month included pool and lawn care.