Hey @Jon Holdman, great explanation and easy way to do the "napkin math" for any property.  

Every state is different, but you could write something out on a paper napkin and have it considered valid.

I emailed the tenant and her roommate that per the lease, the unit must be kept in a clean, safe, and sanitary condition.

My title company could care less if it was written on a napkin.

I recently had a sanitary line fail under the basement floor.

IMO If you don't have a card to give someone when they ask and have to write your info down on a bar napkin, you lose credibility as an investor instantly.

When you find an apartment or home that meets all Section 8 program requirements including a physical inspection to insure the building is decent, safe and sanitary, the hosuing authority executes a contract with the landlord to pay rent on your behalf.

You should be able to get a "rough" back of the napkin idea of monthly expenses per unit from it http://www.biggerpockets.com/buy_and_hold_results/...I had estimated total expenses in my market should average around 45%.

When people start talking about their EPA problems regarding water or sanitary, I just read and ask questions.

Do the math on a napkin to see what kind of profits are realistic.If you play Cashflow 101, (if you don't, find someone to play the board game with) you'll see that the opportunity is a 50% discounted house that you can turn into a rental ONLY UNTIL YOU CAN SELL IT OR PULL THE EQUITY OUT TO BUY A BIGGER DEAL OR MORE 50% discounted houses.