I can also cut back if I have more time to put in, or if I want to build up cash reserves.My maintenance staff also works as independent contractors, meaning no payroll taxes.

Then, if I was the seller, I would open up my books to you.A ten unit unit owner doing self managing might not be a sophisticated seller- sometimes you have to work within their confines and squeeze info out.

$1,500 CLEANING $3,700 TRASH $12,500 SUPPLIES $10,250 REPAIRS/MAKE-READY $1,700 PEST $25,000 ELECTRIC $5,650 GAS $18,650 WATER $800 PHONE $475 ADVERTISING $29,300 MANAGEMENT $4,900 INSURANCE $16,550 PROPERTY TAXES $6,570 EMPLOYEE SS TAXES $340 PAYROLL $3,920.00 gas/phone reimb $8,400.00 health ins $390 Misc$153,000 Total Expense

Management - underwriting requires you to run a 5% line item expense - that's for MANAGEMENT, Payroll is a different line item, and that is what you pay the person to be in the office and lease units.  

However, you have to appreciate the public's perspective: we are the sophisticated millionaires, and they are not.To a certain degree, the board does protect us.

Specifically because the unit count/cashflow doesn't justify having someone on payroll. 

The note part that @Rick Stein was referring to is the promissory note that you'd sign that's really a sophisticated I.O.U.

They will be much more sophisticated then the SFR crowd. 

Depends on your level of sophistication with a niche.

ANNUAL COMMENTS Rent 3,000 36,000 Electric/H20/Garbage 1,400 16,800 Telephone/Internet 155 1,860 Insurance Liability 225 2,700 Sales tax on rent 315 3,780 Employees / Payroll 6,500 78,000 POS Ruby 500 6,000 Misc.