This positions the borrower to have the UPB paid off and have excess cash for reinvestment into the subject asset to cover capital expenditures and/or any deferred maintance.

Hard to figure what cap expenditures or improvements would cost more, but of course I wouldn’t know until full due diligence.  

This does not account for variable expenses (repairs, capital expenditures, vacancy) which can quickly cut into your income if you cannot keep the property rented (vacancy) or increase your expenses if the property ends up needing repairs.Good luck with your investing!

Learn how to put together an APOD which helps to determine all your expenses including a fund for capital expenditures, a percentage for vacancy loss, repairs & maintenance, taxes, insurance, mortgage payment, etc.

The reserves fund would be saved specifically for emergencies of vacancies, unexpected capital expenditures, etc.Thank you! 

I think some expenses might be missing: rental license, rental inspection, trash, landlord paid utilities (some municipalities won't allow certain utilities to be in name of a tenant), vacancy factor, reserves for capital expenditures. 

Flip option:If I sell for $150,000-$9,000 (6% commission)-$4,500 (estimated 3% closing costs)-$5,000 repairs$131,500                                   Holding costs                                       5% interest on $126,000 = $6,300 /yr = $525/mo                                       Property Tax 2100/12=$175/mo                                       HOA 360/12=$30/mo                                        Insurance $1,000 estimated/12 = $83/mo                                         Utilities $200/mo                                         Total $1013/mo-$4052 (4 months of holding costs)$127,448 Net sales proceedsIf paid what is owed on Mortgage ($126,000) then not really any profit for me, and no margin of safety.On the above numbers I don’t see positive cash flow on a buy and hold strategy after considering insurance, property management, vacancy, capital expenditures and repairs.

You can take on partners, such as private lenders, equity partners, etc.Other expenditures are just that: expenses with zero return other than continuing on-going operations.Just wanted to put that out there.

Improving it further with cashflow won't be easy on a multi of that size as your cashflow won't be much per month... and that's assuming you don't have an unexpected big expenditure in year 1 or 2.... which can wipe out all of your projected cashflow early on.

Multi family homes require exponentially more capital expenditures than single family homes.