Some points about me and this property:- it consists of four 1-bedroom apartments - rented to young professionals- this is B property in a B neighborhood - current rents are $2300 ($550x3 and one $650 - the $650 is the newest tenant and the apartments are identical - so it sounds like the rents can be increased in the other 3 upon lease expiration)- it's listed at $139,900 and has been on the market for about 3 months- my calculation on this property is based on full asking price and current rents- The COC ROI is misleading based on the way I did the inputs -- the only cash out of pocket will be closing costs which I've been quoted to be about $7000  out of pocket. 

I would also buy the materials as they are needed and store them yourself to minimize the risk of theft.  

I plan to hold for at least 5 years.This is an early-1900s home with three identical 2 Bed/1 Bath units.

Isn't there something in those online programs that require people to verify their own identity?

And last, how do you confirm the tenant's identity - at application or at lease signing?

@Simcha Davidian Our situations are identical.

We find that that's more of the issue than vandalism or theft.  

Some of the deductibles were high, especially for theft.

There's too much identity theives out there to expose even one digit.I wonder if they'll last 10 years on that home. 10M is nothing to these guys, and no luxury cars?

. :)But get a second opinion anyways, overlays mean that not everyone calculates self employment income identically.