Last year, they also complained about the ants problem when spring came, even when the unit next to them was vacant.As in out lease: "Tenant is responsible for keeping the property free of all pests (ants, roaches, fleas, ticks, silverfish, scorpions, etc.) and all routine pest control".

Once I bought one that broke even and went with the equity building routine and most of mine actually beat that bench mark by a nice margin.Josh C. is right, fly over country has this around nearly every corner and that's one thing about why it's so wonderful living out here!!!

I keep hearing from my lawyer and agent that "Per the contract, the requests should be limited to major defects as opposed to routine maintenance or minor issues."

I will include 5k for routine maintenance that we wouldn't have had with an apartment which is much higher than the actual amount I'm sure... that's to date though, it could change. 5000 + 108550 = 112550Broker:We will use a broker so 6% of the sale price is used.  

What I'm finding in the OC market is there is a lot of competition among investors here who are willing to purchase at a high price that doesn't cash flow by BP standards, either because they are betting on appreciation, tax benefits, or are able to afford to pay cash (among other reasons, these are just my guesses). 3-4 unit properties in the area are routinely selling for $700k-$1 million+, with multiple competing offers after only sitting on the market for a few weeks to a month.

Minor stuff such as tenant turnovers and routine repairs will be an "allowance", so you don't have to project them specifically, but you will need to plug in an "allowance" for them because you will need and use it.Who is going to manage it?

I know I am on the high side with tough to sell properties i would routinely charge 10 to 20% commish.. and if they are fairly low value assets IE under 150k who is going to take the risk and everything to make a few grand thats hardly worth a busy agents time .

I had rented other houses for years leading up to my buying one, so I knew the routine here in Michigan.

Hi Jack, I have copied a brief article that I wrote on holding periods, so hope this helps:Holding Guidelines for 1031 Exchange PropertiesWhile the Department of the Treasury Regulations and numerous rulings make it very clear that you must have the intent to hold your 1031 Exchange property for rental, investment or use in your trade or business, they fail to define exactly how long or over what period of time you need to hold your relinquished properties or replacement properties in order to qualify for a 1031 Exchange pursuant to Section 1031 of the Internal Revenue Code or Section 1.1031 of the Treasury Regulations.Property Purchased Just Prior to 1031 ExchangeThe Internal Revenue Service has routinely taken the position if you purchased your relinquished property just prior to your 1031 Exchange transaction that you have actually purchased and are holding the property for sale (inventory) rather than holding it for rental or investment.

You still have vacancy, property managment and routine maintenance.