So since your mortgage payment is fixed, its actually costing you less and less each year due to inflation eating into that $1,173.

This means you will likely be actively managing it yourself, or you will have a manager in place that will eat up a large portion of your revenue (payroll expense).

You can then file a schedule c or e at the end of the year for all expenses related to the business.

If you sell even with the gains you’ve mentioned your commissions and selling costs would probably eat that up and you’d likely break even at best.You’re right about this not being a cash flow rental.

MF follows nice cycles from boom to bust and once supply hits the top and vacancies start to increase, rents will erode and incentives blow up eating into the cash flow quickly to the point were debt service becomes an issue. 

This means you will likely be actively managing it yourself, or you will have a manager in place that will eat up a large portion of your revenue (payroll expense).

I can't see the reason to go else where to make 1% or 2% greater return.. you would eat that up in travel costs alone.But anyway.. in my mind we are getting to a balance market.. and your correct rents are not keeping up with costs.. so will be interesting to see how it all shakes out in the years to come.I remember when I started in the business if you put 20% down or 25% down and the tenant just paid off your house  forget about cash flow that was a huge win..and why not.. its a forced savings safe investment tax benefits.. etc.. then it became you have to make money on your down payment this is what created that run..Maybe we will step back in time and break even will be great..

@Amir B.I was just up there looking to eat your lunch.

How do these folks eat?

Is there a device that I could hook into the box to measure all the electric used by the apartment and house and then just charge them or should I just eat the electric and push the rent up a little?