When I was analyzing deals in the Private Equity sector, I saw everything from 26% - 42% IRR needed depending on the size of the company managing assets, additionally how many Management/Fee company's are factored into the business model and at what point in the expense model they're collecting fees.There are payroll, Marketing, Office space, etc... now a part of your business model, acquiring an asset for cashflow becomes a small part of your equations. 

Those folks run a sophisticated operation, and if we don't keep up with their level of sophistication (and exceed their customer service) we would lose business to other investment classes that treat their investors better.Perhaps it could be said that the competitor to TK firms is buying homes directly, and that competition lacks sophistication--thus the hurdle is just above that level and anything above that is good enough. 

There are actually many small employers that are starting out but can’t afford to start payroll on some small jobs to get the work done by hiring privately.

I receive biweekly checks today from tenants from 5 years ago from their employers payroll company (e.g ADP).All my tenants are screened up front.  

Is there a source for the following data;  I am looking for the "norm" for the expense ratio (based on either GPR or Gross Income) for individually metered garden style apartments in the south east and the mid Atlantic (Region IV) : Marketing Insurance Janitorial Service Lawn/Snow Licenses Miscellaneous Professional Fees Accounting Legal Property Management Fees Repairs and Maintenance Resident Superintendent Salaries and Wages Supplies Taxes Real Estate Personal Property Payroll Other Trash Removal Utilities Electricity Fuel Oil Gas Sewer and Water Telephone Other (whatever I missed)

I think realtors have to become more sophisticated as the value proposition gets challenged, but it’s harder to automate these transactions given the nature of the business and asset.

This prevents sophisticated professional tenants from filing an appeal to buy another free month.

You may be able to borrow the down payment from your 401k, and then pay yourself back via regular payroll deductions over several years.

If you own an entity that's taxed as an S Corp, you are required to draw wages (payroll, salary, W-2 income, whatever you want to call it).

As you scale out and become more sophisticated I could see how it would be ideal .