For my current opps I underwrite over 4K for just maintenance including turnover and deferred capex but that's how I estimate from fundamentals with 1.5 year avg turnover and I have learned never to take % of rent (you said quick math, so not holding you to it).Let me try this math:Let's do 3.5K * 12 = 42K ONLY maintenance and deferred capexInsurance = 10KProperty tax = 15K (hey it's TX)Rent = 725 * 12 *12 = 104.4KVacancy and overdue = 10%Pm + leasing + renewal = 9%Additional income = 6Kso Income before mortgage but after tax, insurance, vacancy, pm, maintenance and deferred capex = 24.5KLTV = 70%Loan amt = 840K * 1.01 (1 point origination)Interest = 4.5% (I don't think you can get 3.5% agency for 840K)Amortization = 30 yearsMonthly pmt = 4300First year Cf after mortgage = -19.34KTrue, he could have done enough work such that he can defer capex for a few years, and he can sell before he has to pay those capex, and maybe someone will price it poorly and not include that in their underwriting, and he can get away with it.

"In the end" makes it sound like a lengthy process. 

I have a flip in Louisville KY that we are a few weeks out from putting it on the market, but the past owner has an overdue account balance on his water bill for $300.

Read here for a more lengthy list: Questions for Hard Money Lenders.You don’t mention your state, but I suggest you stay away from strangers by borrowing locally and forming an eye-to-eye relationship with your lender.

The utility company would copy us on invoices once they became overdue, but would let utilities go months on end with no payment.After getting stuck with several bills that equated to 5 months of utilities, we changed our policy and included the WSG in rent. 

First off I want to say I am quite emotional today an apologize in advance for this lengthy post.

I wrote a pretty lengthy article on this subject (and how to avoid it) that you can find HERE. 

In the case that you don't get the rent paid, sending you this letter has started the lengthy process for eviction.

The time it takes to set up a vacation rental is the most lengthy but after it's all done it's just a bit of maintenance for guest comms, updating pricing, etc. 

I currently have an issue with a tenant that I have been trying to remove since May (that's when their lease was over). Due