They are usually looking at C or D properties that local agents tell them will “cash flow“ They usually don’t cash flow because of high maintenance and vacancy.

It could cause a low spot where things slow down and then it all compounds until there is a clog.

However I like to run my numbers conservatively and account for cap ex, vacancy, maintenance reserves 10/5-7/5-7% respectively.

I will assume somewhere in the lease it states that the tenant is responsible for a basic maintenance and upkeep of the property.

So the choice of tenant would be key.On the flip side, reasons to hold: a very low mortgage rate; probably not the case. 

@Tove Fox hope you find this copy & paste useful:)-------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

The model becomes very problematic in low quality assets, and sec8.

That means weekly on going preventative maintenance fixing small problems before they become big problems. 

Vacancy and maintenance factors should be higher than for Class A or B.

Additonally house tenants take care of lawn maintenance and snow removal, and pay all utilitites.