. $200 is a bit low in my opinion and leaves very little room for profit if you run into any unexpected vacancy's, evictions, or capital expenditures.  

Address: 8177 Garfield Ave Hunington Beach, CA 92646IF i were to buy this for 2,300,000Cap rate: 4.56Bed/ Bath: 1/1 x 8 UnitsRent: 2000 x 8 Expenses: Property Management Fees - 1000Repairs/ Maintenance - 319.14Real Estate Taxes - 2875Rental Property Insurance - 766.67Vacancy Costs - 1333.33Capital Expenditures - 960 Total monthly expenses: 7254.44Financing: Down Payment: 20% - 460000Loan Amount: 1,840000 @ 5% interest rateClosing costs: 69,000PI/Mortgage: 9877.52Cash invested: 529000Total Monthly Cashflow: -1311 = 16,000-7254-9877.52ROI: -2.57%The point of this excersise is for me to recognize bad deals.

He got so big enough in real estate where his daily expenditures are covered by the cash flow from his investments, so he quit FOX NEWS.

After the PMI drops, I'd cash flow only 140 per month (again after all expenditures).I know I can't bet on appreciation, but am I wrong in thinking it could be a good idea to hang onto this place for a bit?

I first go by the 1%, but am conversing with the Seller today about what expenses the tenants are responsible for, Cap expenditures done recently, etc. would you mind sharing what ratios you target?

For example, if it were that simple, doctors could just have patients sign off that they might die or be injured during surgery, and there would be no need to spend multiple digits of expenditure in malpractice insurance and we could visit a doctor for $50.Go after their insurance.

You also need to build in 5% CapEx expenses for long-term big expenditures like roof, furnace, water heater.

In most cases this requires a capital expenditure that should be factored in a Comparison analysis. 

Any money you put into the rehab can't be included into the purchase price.If you are expecting a decent equity bump then you will need to wait for a 6 month seasoning. why is it that some lenders are saying you cannot include rehab/repair expenditures in purchase/acquisition and cash out without 6 month seasoning, but others are saying yes?

I factored in property management at 10% as well as capital expenditures, maintenance, sewage, etc.Granted, I am aware that the tenants will likely cover their own utilities; plus I don't live in Vegas, so my estimates may be a lot more conservative than what the actual average amounts might be.