Also, the good news is banks will like you borrowing on this property more than on single family because you are effectively buying a business that throws off money (Banks will be looking at the Debt Coverage Ratio among other things) whereas single family is a little more challenging for lenders at this scale.Lastly, you can still get these returns with single family homes if you come across the right deals, it just usually takes more physical and capital expenditures to improve their value, which takes a lot more time and energy, whereas with multifamily, you can hopefully exploit mis-management vs physical distress.Good luck to you.  

Are you setting aside approximately 10% for maintenance, capital expenditures, and other projected needs?

Anything that someone does not need to physically be here for, save yourself the expenditure and outsource it.

The problem with these 4 unit investments, unless you're seeing a much healthier cash flow, is that it takes one capital expenditure to knock out your positive cash flow and destroy your returns.Can you buy something larger that gives you a better benefit of scale?

The monthly insurance is $45, the monthly taxes are $110, the monthly property management is $50 and, on average, the monthly maintenance is $50.An experienced landlord would also include a few other costs/expenses in the equation:- Vacancy- Capital Expenditures- Overhead (Legal, Accounting, etc)Plus, your PM costs of $50 seems a bit low...does that include the cost of renewing a tenant or finding a new tenant when the old one moves out?

It says that over time, your expenditures will average out to 50% of the gross monthly rent.The 2% rule is a quick, conservative method to see if a property will cashflow.

Given all that there is a very good chance you will be negative for the year and we haven't even touched putting away money for capital expenditures.

Do you want to own C or D properties, which are less expensive up front but may require more upkeep expenditures?

@Michael Randle CapEx (Capital Expenditures) are those costs which, when incurred, will be amortized over a fixed period of years (Roof, new electrical, plumbing, windows), where as repairs, as @David Faulkner pointed out, are minor and are expended in the year they occurred (leaky faucet, new garbage disposal, clogged sink/toilet, one broken window, etc).

After mortgage, insurance, cap. expenditures, main., etc., it would conservatively cash flow $1,000/mo.