Quote from @Jaycee Greene: A few things I noticed, in addition to having the tenant pay the utilities are:1) Incorporate annual increases in rent higher than 2% (in your area, maybe 4%-5%) with a slightly smaller increase in operating expenses (say 2%-3%)2) With a gut rehab, I'm not sure why you need to spend $128/month on cap ex, at least for the first year or 2.3a) An 80% cash out refi is probably going to be hard to get.

I am understanding I can convert Operating Partner Units in an UPREIT to REIT shares (taxable) but the benefit is I can sell any percentage of the operating partner units, paying taxes on only that percent I sold.A friend that is a bank auditor, specializing in commercial real estate said:operating costs should total about 30%, leaving NOI 70%For us business people NOI in real estate is EBIDA (T left out as Taxes are an above the line expense)Any know, does the DST have to produce audited financial statementsSo now I feel I am better equipped to work with the RIRep and tackle the recommended PPMIf you really follow the track record of when these multi family unit being purchase and sell, average holding time is 3-4 years so you pay the premium in there and that's why how DST sponsor makes money.

Quote from @Anthony Sigala: We are all aware of the 1% rule--the gross rent produced by a property must equal 1% of the of the property's acquisition cost.

Pay to separately meter the utility.

There are multiple ways to ensure the tenants cover utility costs when using shared meters. 

Purchase price: $210,000 Cash invested: $35,000 Triplex 3- 1bed 1 bathCompletely RenovatedShared Utilities What made you interested in investing in this type of deal?

The reality is that the Gross S8 Rent amount on an S8 voucher includes all utilities.

I figure never sell the cow when you can get the milk for free)...especially if that cow is producing organic cash flow ;-)I'm going to guess your rents average around $2,200 to $2,400, maybe a little over $1.00/SF, is that in the ballpark?

Our Tahiti lime tree which is about 20 years old produced about 300 pounds of fruit.  

Selling a primary residence and then buying it back as part of a 1031 exchange could raise red flags with the IRS.Your parents have a valuable opportunity to defer a significant amount of taxes by utilizing the $500,000 exclusion on their primary residence.