This changes as the mortgage gets paid down or appreciation increases the value of the property.Other less professional investors will usually ignore equity and appreciation in order to create artificial cash flow and ROI returns higher than they actually are.In your example they will likley suggest your ROI is infinite and your positive cash flow is actually $250 higher than it really is.

Top it off with som HOAs being super strict on things like lawn maint. and exterior look of things and othe bylaws so it could generate more noise for you as the owner. 

The same action applies when looking at the taxes, insurance, PM cost, Vacancy rate, Cap ex, Maintenance, lawn care, routine maintenance etc.... expenses.  

Contracts for maintenance, lawn care, copies of utility bills paid by owner.

That's the backstory, and here's the new twist...I just got a letter from a lawn contractor, and unbeknownst to me, my renter had hired the contractor to cut the grass, and the unpaid bills totaled $952.

@Chris Oei - Well then, maybe this neighborhood investment opportunity could be spread among the SinCity, Las Vegas, and Henderson REI, REA, and REIclubs enough to attract a concerted and coordinated effort (to not artificially raise prices) resulting a sharing of the wealth and a more valuable neighborhood.  

They would never hand their sign out on the front lawn if the places were trashed.  

Very well maintained and in really great shape.The other two units is owned by a resident whom lives there, and takes care of all the maintenance.All of the maintenance (snow, lawn, common elec, water sewer) is covered by an HOA fee of about $250 per unit.I've discovered that this is an unwarrented property, and there for I wouldn't be able to get typical funding, and would have to look to a private bank or credit union at a higher rate.Basically, If I do move forward with this property.

Tenants mow lawn and shovel snow for free3. 

I also joined another site this week that suppose to have privet money when I hit the get finance button I got a finance co and was looking at 11% and 3 1/2 points and minimum loan is 75,000 project I'm looking at right now don't need that much 45k to get the property  since have to do sight unseen its a re-po out side looks good lawn is still kept and siding is in great shape and roof is newer over sized garage in back yard is only a few years old so not expecting more than 15 to 20k on the rehab so looking at 65k for the whole project it last appraised at 133,833 last sold in 2001 at 80k  figured to list for 90k when done he asked why I would work on that low end of a project?