Using a cocktail napkin as your financial planner is a bad business strategy.

Mike another point that I think should be clarified with regard to 2% and 50%.50% for expenses for napkin work is great  and will pretty much always be relevant up to a certain rental amount... high rents like 2500 to 4000 like we are seeing her on the west coast 50% is a little high to a lot high... 30% might be a better number at that point.2% was a window in time... that has closed for 90% of the US rental stock...

That's the back of the napkin calculation.  

I am looking for a cocktail napkin assumption to start.

-------"The Section 8 Housing Choice Voucher Program (HCVP) is a federal program funded by the Office for Housing and Urban Development (HUD) to assist low-income families and individuals to live in decent, safe and sanitary units." ....

Tom you should do some research-particularly into the 50% and 2% rules, which are good back of the napkin guidelines for analyzing property.Also, Investing in LA is tough.

Once you get further along, you'll want to start narrowing down the properties that you analyze - that's when stuff like the 50% rule will help you to get quicker and do a "napkin calculation".

Tenant’s Maintenance ResponsibilitiesTenant will: (1) keep the premises clean, sanitary, and in good condition and, upon termination of the tenancy, return the premises to Landlord in a condition identical to that which existed when Tenant took occupancy, except for ordinary wear and tear: (2) immediately notify Landlord of any defects or dangerous conditions in and about the premises of which Tenant becomes aware: and (3) reimburse Landlord, on demand by Landlord, for the cost of any repairs to the premises damaged by Tenant or Tenant’s guests or business invitees through misuse or neglect.

I have done some back of the napkin work on the 8-plex for sale in Incline and it looks like a winner to me.  

With all four units rented my back-of-the-napkin math indicates it should cash flow about $800 as is while paying $800 for insurance taxes and mortgageAm I a fool for even considering this?