My basic underwriting making some standard assumptions on HOA expenses, 20% down, 7% interest rate, 30 year mortgage, utilities, supplies, and maintenance costs shows a loss of about $22k per year if you are self managing.

The deal doesn't work as well with higher interest rates.

Average rents are hovering around $1,100 a month, and properties are getting snatched up fast, with vacancy rates staying low.

It might mean giving up a lower rate but if you do not have the personal capital or do not want to part with it, it is the easiest way.  

If the rents are already nearing market rates, will she be able to go up that much? 

The key is to analyze occupancy rates, seasonal fluctuations, and what type of properties perform best.

Cash flow is definitely the biggest challenge; both in terms of finding properties to buy that cash flow with a loan on them and just company wide given interest rates and labor/material is up and, at least where I'm at in Jackson County, MO, taxes are way up too. 

Chicago is losing housing stock at an alarming rate. 

.), and continue to educate myself on NOI, Cap rate, cash-on -cash return etc.BP community, I am open-minded, willing to take initiative, always willing to be taught something new, but also ready to share any experience or knowledge I have that can help someone else. 

Charge the tenants a higher rent rate and include utilities with their rent.