If your goal is to make money, and you aren't finding deals that you think will do that, there are other things you can do.But more directly to your comment: 1. cap rate does not take into account appreciation.  2.

Like Jake Baker suggested, keep good records and have a dedicated bank account for your property, properly separating personal and business expenses.

My estimates are also accounting for $20,000 in septic (not included in the $400k number). 

One consideration as you are working on locating private lenders, is that IRA, 401(k), and other retirement accounts can be used in many cases to make private money loans.

Property manager (PM) 's lawyer continued the case to get the unpaid rent from the tenant.PMA between landlord and property manager(PM) has also expired so landlord got the property back , but when landlord requested to settle the account and the deposit( there is one month deposit from landlord also), PM refuses since the lawsuit is going on with the tenant, Additionally PM is still charging the monthly property management fees from landlord even though landlord is managing the property.Landlord is done dealing with PM and requested the PM to withdraw the lawsuit against the tenant ( landlord is aware that he will loose 2 months rent), PM came back saying they cannot withdraw the lawsuit since that will violate fair housing law.QUESTION:Does withdrawing unpaid rent case against the tenant violate fair housing law ?

If you are on cash accounting, yes you could do that.On the other hand, you are ignoring carry-forward losses. 

You are likely in a better financial position on account of that. 

Quote from @Victor Tofilski: @Joe VilleneuveThe other unit was a unique circumstance the tenant only needed a place for 6 months before he moves again so I gave him a different price to account for future vacancy.

But ask your CPA/accountant because I don’t know. 

I'm looking to create relationships with wholesalers, real estate brokers, contractors, real estate attorneys and accountants!