If you and @Jenny Peng are just looking a gross cash then they won't hurt you.

There was recently a post about giving money based on gross or net income that has been removed from the forum, and I think I may have inadvertently killed it by violating one of the forum rules....unintentional, I promise! 

I could not input the expenses correctly and separately as I do not have the itemized expenses, only the gross expenses.

The right property with a price tag just under $1mil including renovations can do $250k-$300k in gross rents per year. 

@Denise MunozI almost stopped reading when I saw it wasn't,  the 1% rule.......If they are selling for $84,500....the gross rent needs to be $845/mo minimum.....Check the real comps for the area....as opposed to what may be on Zillow and see if you can get them to lower the price.......If you inherit long term tenants there and you try to immediately raise their rents by 12 to 13% then you have a decent likelihood of making them become bad tenants.  

@David Ribardo and @Joe C jump in with any edits/comments you might have Purchase Price $149,900 (50K a door rule looks good) Three units total gross/month 2239 (1% rule looks good) Fixed expenses: Taxes 2517, Trash 1125 (375/unit in Allentown unless private collection deal previously arranged) Insurance: 703 Common Electric: 519Water/Sewer: 802Allentown Fee: 225 (75/unit/year) Variable Expenses:  Vacancy: 2239 (One months rent of each place, or 8.3%) Management: 1800 (50/door/month) CapEx/Maintenance: 3000 (1000/door) Total Operating Expenses: $12,930 Total Gross Income: $26,868Net Operating Income: Op Ex - Gross = $13,938 Divide your NOI by the cap rate your looking for and you have your offer price.

If tenants are paying, I'd think you would only be out a few hundred bucks each year (per above), at worst.Assuming rents as-is ($900 for 3BRs, maybe $700 for the 2BR), your gross monthly rents (at 100% occupancy) are still 2% of the purchase price.

That is gross incompetents or was this guy brought in through a different PM ?

Although i don't have threshold for each of these numbers but I do have to feel good about them to consider- from gross rental to mortgage and expenses.  

To clarify, do you also mean to gross rents up to include rents for all units?