Net income = $39,240Monthly operating expenses are as follows: Trash - $33, Landscaping/yard - $66, Electric - tenants pay, Water - $95, Maintenance $87Monthly taxes about 3KSo, gross expenses are at $41,064If I'm doing the calculations correctly, my net operating income is -$21,888 and cap rate is -3.4%.Obviously the current numbers look terrible for this investment, but I feel like the rent should be raised significantly based on comps (above 2K each unit). 

Because a tooth paste cap lodged in the drain is not a covered maintenance issue, they want to charge me $150 to take care of it.

Since each one you sequentially buy will be a primary residence, even the Fannie Mae cap of 10 financed properties will not apply.

Your total return is a function of cap. rate, appreciation, and leverage.  

Best thing to do is to call the local housing authority and they can explain some numbers for you and the process (assuming you can get ahold of them).You could always just post the numbers here or in the proper forum and double check it.Hey thanks for taking the time to call me out on my mistakes(IK THAT MIGHT SEEM SARCASTIC, ITS NOT)I did take into consideration cap ex, repairs, property management, debt services, taxes, and insurance.

I started buying rentals in the OH markets about 10 years ago, great double digit net caps, 25- 30% NETS back then. 

The town put a cap on short term rentals right after, but excluded certain areas.

Option 1 - buy a house and pay ~3+k per month (including taxes, insurance, cap ex)Option 2 - rent in good downtown area for $1,300 per monthI'd pick option 2 and save $20k guaranteed per year (versus principal paydown, nonguaranteed appreciation, and negative cash flow).

Even paying a lawyer and a cap to fight the irs could cost more than the commission. 

DSCR is primarily used if you've capped your 10 eligible government backed loans.