People that get destroyed are ones that are enticed by the low interest rate and assume they can refi after the second year. 

A and B tenants, usually need more hand holding and expect more because they assume that they are entitled to it because they are paying so in rent. 

@Andrew C.I have the same questions about it as well.. for example, you now have say 5 leases that likely are all for different date ranges/terms and deposits etc. do you do all males or all females together - I'm assuming this depends on the state you're in?

You can probably beat $2000/year insurance, but the management fee should be 10%, you need to factor in turnover too and 5% is probably not enough for both maintenance and turnover and I assume you added it, but you didn't mention property taxes (which have been terrible in Jackson County lately since Frank White decided to jack them through the roof). 

There are two reasons this is a bad idea.Investing with an SDIRA (assuming it is not a Roth) will often result in paying significantly more taxes. 

I assume because the profit wasn’t that good and hard to get loans.

This also leads owners to ASSUME simpler is better when it comes to management contracts.

I mainly want to ask if these assumptions are reasonable and if there's anything I haven't considered:(1) multifamily units in NJ close to New York City, ~$1,000,000, 20% down payment, (2) Using the following assumptions: 4% appreciation rate, 6.5% interest rate and 5.0% refinance after 5 years, $10,000 yearly maintenance fee(3) ~$6,000 monthly rental and assume 3% increase yearly with 5% vacancy rate(4) Based on the above, the calculated IRR if selling at the 10th year is ~19% (considering tax benefits) and ~17% (without tax benefits).

I am assuming here, but if it's been on the market so long, it's priced too high for it's condition. 

If they have a good interest rate it might be worth looking to see if you could assume their loan to take advantage of the lower rate.