The analysis below is a conventional loan with 20% down.Financial Analysis Cash on Cash Return3.65 %Internal Rate of Return (IRR)9.65 %Return on Equity (ROE)4.05 %Capitalization Rate5.89 %Gross Rent Multiplier (GRM)9.06Debt-coverage Ratio (DCR)1.24Operating Expense Ratio (OER)43.19 %Also, the seller is offering owner financing with interest only loan for 3 years so she can have time to locate another property in Florida (this property is in West Virginia) for a 1031 exchange.  

Even if the unit isnt subject to rent control due to the age of your building, given the effort to overturn Costa-Hawkins, I’m nervous about buy and holds in California.

I'm reading The Millionaire RE Investor and he has a chart there calculating ROI and ROE.

Basically, I see this as a basis for the agreement to be overturned if a judge was so inclined and order the return of possession and funds to cure other related matters lacking sufficient basis in law to cure the matter equitably.

Curious if you consider the post-rehab ROE when deciding whether or not to hold or sell the property.  

If I get that $5k or $10k fine, it is likely going to take me about $2,000 in lawyers and fees and about 20 hours of time to get that fine overturned.

I'm not saying it's a great area but I expected overturned shopping carts on proes front lawns with weeds growing through it.

So if I would purchase these duplexes would I be constantly overturning them/ sitting empty.My number: vacancy 8, matanance 8, with property managment 8, capex 6, and cashflow is 200.  

Keep in mind that the Missouri Supreme Court this past month has decided that tenants have the right to a jury trial in rent and possession. . . so your tenant when you evict could hire an attorney and go to trial, not sure if they have a right to have an attorney provided for them or when the new rules will start being used.If we are unsuccessful in getting this overturned, expect a lot longer time frames - think months, not weeks and much higher costs. . . 

You should check into what the lenders you are working with allow for deferred maintenance to reduce your cash at closing and pop your COC, ROE, IRR, or whatever metric you use as a hurdle rate for the project.