That equates to less than 1% inflation and most tenants don't complain.thelandlady: what I try to do is tell my tenants up front about rental increases.

Instead of putting the "renter has all the liability related to the pools" clause insert a clause that says "no in-ground, above-the-ground, inflated or any other pools are allowed".

Again, this is just my theory, I do believe that the Asian demographics have really inflated the prices to extreme bubble levels vs income in the Cupertino housing market.

You have 39% as all in annual expenses.Will be more like 50 to 60% based on age of the building and any landlord paid utilities.Even at 114,480 number it makes no sense.Annual rent growth average for multifamily is about 3% which keeps pace about even with inflation.

I have always compared buying investment property to that of buying into a Divorce....You are literally financially committing to ongoing maintenance, complete with inflated estrogen clauses, alimony with COLA, child support (if there are ancillary buildings) & a lot of baggage.

It has the potential to net around 15% cash on cash IF I can refi it at around current market rates in a year or two, if not, it’ll be more like 6% (which, sadly, is pretty standard for the area) until inflation pushes rents up.Would you bet on this thing?

These couple of years are huge - in part due to inflation (a huge asset to a RE investor), and in part due to the amortization schedule of your loan improving (i.e. paying more principle than interest).  

To that you could add 2% inflation or $7,380 and mortgage pay down of $4,613 or $16,157 return on your investment of $87,500.The way I look at it is NOI/(price + rehab) compared to cost of money. 

I know some investor here in Canada that are successful with this strategy how ever the market is inflated over here.

The future of multi-family pricing has to do with demand, supply, interest rates, and inflation.