the monthly income is based on daily rental and i put in a conservative 30 % vacancy based on another rental. 

However, in my experience in STL, the appraisals have been very conservative. 

@Chris T.The most conservative approach would be to have the funds returned back to the IRA.

if you self manage you may be able to keep expenses trim at around 30%, if water/sewer is direct billed, i wouldn't pay more than 130k due to market, how small it is, and lower lot rent. and that is based on 50% expense ratio w/ 10 cap applied with more conservative expense ratio to build in a little bit of room for error.

I had rental units on Maui and First Hawaiian though extremely conservative were good to work with.

I was conservative on the rents expected and added value after repairs.

I feel like sometimes I run my numbers really conservative, but I could be wrong. 

@Abel Lopez also consider that, when you'll need to exit and pay the balloon payment to the seller, that bank interest rates will likely be higher than the are now, so be conservative in you future projections.

But the math works out and numbers don’t lie if you have factored in all your variables conservatively.

I am sure to make the math simple and to be conservative teachers use this 8% number.