That's pretty industry standard. 

However, if you have the time and prefer to source properties on your own, I would highly recommend the following strategies:Connect with probate attorneysVisit property auctions: These happen monthly and, surprisingly, aren’t saturated with investors.Cold callingTarget LLC owned properties: Over the years we have seen an influx of companies purchasing SF for rentals/long-term holds and they failed to account for property taxes and an increase in new construction coming to the market.

I ran the numbers on the deal knowing that I would break even on cash flow in the first year with minimal rent increases but significant cash flow in year 6 when the 401k loan is paid off.

What is the best way to increase deal flow with multi family off market properties?

So thats kind of the standard operating procedures in those markets and nothing really sells for full list price..

@Karl Kauper with a SF you can require the tenant to take care of lawn and snow, but they might not be up to your standards. 

We typically estimate standard costs for these items but get them done much cheaper with our own crew.

I do understand that market value becomes what has been paid for a deal but with minimal work and renovations my deals almost always significantly increase in value in the first 6 months.

Great tenant but property tax increases have reduced my cash flow.

They tell you to request to market, but there is a max allowable increase which is a joke.