@Michael Le  I found this on investopedia.comBREAKING DOWN 'Capitalization Rate'The capitalization rate is very useful in that it streamlines information about real estate investments and makes it easy to interpret.

It takes into consideration the Appreciation, the Renovations, the Mortgage Payments, the Rents that grow only 2%, the Expenses which grows 6% annually, and boil it all down to a SINGLE Internal Rate of Return (IRR) in CELL J18, which is at 10.01%The interpretation of this calculation is that if you bought a property for $100k with a Mortgage of $80k, needed $75k of renovations in year 1 and then another $10k of repairs in 2021, has rents of $1,200 for 3 apts and expenses around $1,960 per month, and assume a 4.81% appreciation rate with rents rising 2% and expenses rising 6% for the next 10 YEARS....... this boils down to a 10.01% ANNUALIZED Return for each and every year for the next 10 years.Now, because we did this kind of calculation, you can then compare it to ANY Investment.... be it Bonds, Stocks, a Business, etc.

If so, that would be considered a portion of "gross rent" and it seems correct to deduct a management percentage based on your arrangement.If the water is "included" for the tenants and not charged as a component of the rent, it would be improper to deduct the management fee since it's not a component of gross rent.This is purely from a contractual interpretation perspective (without seeing the contract), so shooting from the hip here.Congrats on the investment!

The reminder of "fair housing laws" is a very common theme which many landlords interpret as them having to choose a applicant because they are "protected".

I have no idea what the laws are there but before you make any significant modifications, you may want to look into this, it could hurt you at resale time if you go about this un-permitted. 2) I'd also double check with the HOA that you've interpreted the bylaws correctly before you start.

This includes experience interpreting insurance policies, inspecting homes and businesses for damages and completing construction estimates. 

Interpret that as you will and best of luck.  

http://www.nhfloan.org/programs/dpa.shtmlMy interpretation of this says that yes!

My advice as far as Dodd frank get legal advice from an attorney because the rules haven't been tested in trial and although you feel you interpret the bill correctly do you want to be the Guinea pig a lawsuit is brought against first for us all to learn what the real ruling will be?

Let me know if I mis interpreted any of the data , this is all new to me.