Mine are all roughly in the same price range as OP from 100-175k, but consistently the expense ratio (excluding financing) is usually more like 30-35% of rent, with the only estimated components being repairs (I budget a fixed $600/year per property, and I use a vacancy rate of 4%) But including taxes, hoa, property mgmt, vacancy, repairs, insurance, advertising costs for turnover all the properties are in this narrow range.I know my NOI targets tend to be less agressive than full time RE investors, but I'm pretty happy with properties that hit close to 7% cap rate.

My insurance lists those 3 breeds.Does your insurance list those breeds as included in your coverage, or as excluded from your coverage?

Televisions mounted to the wall have also been declared as fixtures, and must stay, unless specifically excluded in the contract.Though generally not considered fixtures, vanity mirrors are something that I would expect to stay.

Unrecaptured depreciation can not be excluded under section 121.

As for the particular area you want considered, as for a copy of the lender's BPO and bring it to your own broker to see if he can explain why that market area is being excluded.

Are the total gross rents $2700/month and the total purchase price 130k, excluding closing costs?

Could be either the HOA or lending issues.HOAs are entitled to do whatever all the members agree to, and often that excludes rentals.

If they are wealthy then it is very likely they got that way for a reason (excluding people who inherit wealth).

If you separate out things like appliances and landscaping using the IRS rules, you might be able to exclude having to recapture some or all of the depreciation you take on those items.

For purposes of this Act, the following definitions shall apply:(1) FINANCIAL INSTITUTION.—The term ‘‘financial institutions’’ means any institution including, but not limited to, banks, savings associations, credit unions, broker-dealers, and insurance companies organized and regulated under the laws of the United States or any State, territory, or possessionof the United States, the District of Columbia, Commonwealth of Puerto Rico, Commonwealth of Northern Marianas Islands, Guam, American Samoa, or the United States Virgin Islands, and having significant operations in the United States, but excluding any central bank of, or institution owned by, a foreign government.(2) SECRETARY.The term ‘‘Secretary’’ means the Secretary of the Treasury.(3) TROUBLED ASSETS.The term ‘‘troubled assets’’ means residential or commercial mortgagesand any securities, obligations, or other instruments that are based on or related to such mortgages, thatin each case was originated or issued on or before September 17, 2008, the purchase of which the Secretary determines promotes financial market stability; and, upon the determination of the Secretary in consultation with the Chairman of the Board of Governors of the Federal Reserve, any other financial instrument, the purchase of which the Secretary determines necessary to promote financial marketstability.