For long-term planning, consider transferring the property into a trust to manage tax and legal complexities.This post does not create a CPA-Client relationship.

It's an estimated cash on cash return given current rental rates subtract expenses assuming 7% interest rate, 10% management fee, 5% repairs, 5% capex and other expenses like mortgage, insurance, tax. it's a estimate to tell you what properties to analyze vs ignoreyou can see the are pockets of negative returns as well as pockets of positive return. this is to supplement the data @Devin Conley provided

Do you think that is fair - to be forced to pay for your manager's mistake?

Before we sold it we hired a management company to reduce the burden, but even then we decided to sell and walk away. 

Without accounting for management fees (I have not yet decided if I will try to self manage), and with planning to raise rents to typical market of $825 for each of the smaller units, and $1200 for the larger unit, does this seem like a worthy first investment? 

When I had to switch Property Management companies, they suggested that I do include pets in my rental listing. 

One of the biggest factors in successful flips is building a strong team: contractors, agents, lenders, and property managers. 

If not I would suggest finding a servicer to collect and manage that note. 

If want passive just buy stocks or class A lower leverage multifamily which is easy to self manage. 

@Kevin Wood: Fixed Asset Management module is included in the QuickBooks Accountant version where you can calculate the depreciation.