. ~$166,500 cash to close)Current rents are $1425 and $950 so present upside potential with existing long-term tenantsBeen on the market a long time because its overpriced (list was $535,000, now $495,000)A fairly turn-key property and i have a list of capital improvements including furnace, roof, paint and fencingProjected returns once rents reach full market:Pre-tax Cashflow $6,107 (3.88%), Pre-tax + Pay Down $11,720 (7.44%), After-tax + Pay Down $11,745 (7.46%) and Total Return $24,855 (15.79%)4 unit Multifamily in Clackamas Strike price of $750,000 with 70% Loan-to-value requires approximately ~$234,000 cash to closeCurrent scheduled monthly rents are $1,388/per unit Lots of updates and capital expenditures done, not the greatest location Projected year 1 returns (before achieving full-market): Pre-tax Cashflow $11,489 (5.11%), Pre-tax + Pay Down $21,565 (9.58%), After-tax + Pay Down $21,424 (9.52%) and Total Return $45,291 (20.13%)In high entry barrier markets like Portland, I am finding the small 2-4 unit multifamily properties that hit the market to be mostly priced out. 

Normally, a new heating system would be considered a capital expenditure and require depreciating.

The rent amount should at a minimum cover your recurring monthly costs, allow for a cash reserve for non-recurring capital expenditures and repair/vacancy-related costs and ideally put some cash into your pocket. 

BUT I also use commercial loans with a 20 year term, 30 year term may change things, BUT don't forget capital expenditures.

These expenses can be anything from utilities the owner pays, management, repairs, capital expenditures, vacancy, HOA fees, etc.

That will reduce your capital expenditure. 

Capital expenditures are your big-ticket items like new roofing, electrical, plumbing, etc.

Description:7 duplexes, 2/2 with 1 car attached garage (one with no garage)built in 2001B+ class neighborhood, steady rental a lot of multifamily in the areaall on the same cul-de-sacwood frame, 2 story, vinyl sidingtaxes $3144 yearlyinsurance $800 yearlytenants pay water and electric (electric heat)currently fully leasedAmateur property management, one tenant manages propertyBack of the napkin calculations:Net Operating Expenses (Per duplex per month):Taxes: 262Capital expenditures: 100Property Management: 170vacancy: 85insurance: 66Total Expenses: 923 (11,076 yearly)Gross Rents: 1700 (20,400 yearly)NOI: 777 (9324 yearly)asking price: 185000cap rate: 5%

But I dont count your principal paydown out of your monthly expenditure.

To me, it is the cash left over after covering all expenses, even the non monthly ones like capital expenditures.