They sold their home and retired to a very walkable 2bed 1 bath apartment in a neighborhood they liked.

If you are seeking maximum leverage using our capital, let's talk about your deal, or getting prequalified to shop for the deal that makes sense.

Fouad,mortgage closing costs: 2 to 5% This look okay especially if you include buying pointsproperty value appreciation: 3 to 6% I would go with 1 - 3% as it varies for neighborhood/area to even buildingscash on cash return: 2 to 4% This should be higher than your range.cap rate: 4 to 5% Not surerent growth: 3 to 5% 1-3% depending on the arearental property expenses growth: 2 to 4% This seems okayrepairs & maintenance cost: 5 to 10% This seems okaycapex: 1 to 3 % Not sureVacancy rate: 4 to 6% Depending on the area, I would put this to 1-2 months on average.

There are even differences between neighborhoods.

Your current home is in a nice neighborhood and is mostly if not all owner occupied (based on your estimate rents $4,500-$5000).3.

How is that neighborhood?

I like it because it does appear to be a one stop shop for what I use it for, but its gonna take some time to adjust to the workflow. 

I would definitely shop more, neither of those deals make sense to me. 

I imagine you have shopped for a lower insurance quote, even though many companies have left the Southeast and Florida.

I will give you the simple answer - you are unlikely to cash flow whatsoever on a turnkey property in Huntsville or Madison right now unless it is in a C/D neighborhood, and/or you plan on putting more than 30% down.