If you can nail down the exit then you can work backwards and see if your $150,000 fee for setting up the deal is realistic.One way to test the market is for both you and your neighbor to put your units on the market at the same time and to market them together and see if you can command a premium above what they would sell for individually.

It's not an uncommon strategy, and not crazy.Let's say that $2k you kept in your pocket lets you improve the kitchen to command another $50/month in rent.

Some people include their financing costs, some people include capital expenditure as a percentage of gross rental income (I never found this one reasonable since usually higher-end properties that command higher rent are treated better and cared for better than lower rental income properties), and then there are some people who assume that your expenses are limited to taxes, insurance and owner-paid utilities.  

Ostensibly your wages there are higher than you could command in Arkansas, Indiana, Texas, or {Insert Investor Friendly Market Here}.

The cost of land and construction is so high, it commands premium rents, which means only Class A gets built. 

As an added benefit, your residents will save on their hot water bills which means you can command slightly more rent- or your tenants will be slightly less likely to leave due to the lower utility bills.

We don't winterize pools in the Phoenix market but obviously that would apply in other markets.Pools in Arizona are in demand and command higher rent so vacancy is generally very low.

Large bedrooms and kitchen will command a big premium and can justify the $900+ rent much better than fancy finishes will.The tenants you get will depend greatly on what area of Little Village you are renting in.

You can make a decent profit with those rates because certain parts of San Antonio command higher rental rates. 

No matter how nice you make the property it's hard to command a higher rent.