Overall, we have had better luck investing passively with syndicators in apartments, car washes, self storage and ATM’s where we get monthly cash flow and great depreciation benefits.  7-10% cash flow per year with 16-19% IRR. 

Wear an N95 mask and clean your clothes (washing machine) immediately after you are done working.The pros will charge you about 3k per item for removal so it will get expensive fast.I have no opinions on the clothe wiring other than it looks like you are gutting the house.

TENANT(S) are responsible for applying for and receiving on street parking permit.6: If the unit broke because they washed shoes and boots I would determine this is not normal. 8: Great addition thanks 9: If TENANT(S) do not deliver unit back to LANDLORD at the conclusion of tenancy as agreed above in this paragraph, then TENANT(S) shall be subject to a fee of $5 per bulb.11: Just spoke with my insurance rep and they agree with you. 11.TENANT(S) is required to have renters insurance during their tenancy and are required to also name the LANDLORD as additional insured.13: Good catch!  

What he realized was he needed a A minimum amount of cash flow.

@Darren Budahn & @Dawn Anastasi, this makes good sense for a SFH, I like the incentive for the tenant to manage their own consumption.Regardless though, if I reduce rent and the water bill is paid by the tenant, it should really be a wash over time in regards to Expenses as a % of Gross Income.Reworked the numbers for my example:Gross Income: $1035/mo rent, 4.2% Vacancy Loss (1 out of 24 months) = $11,902/yearExpenses: $3,200 Tax, $560 Insur, 5% Opex ($595), 10% Capex($1190), 10% PM ($1190), Water Bill (Tenant), and Admin/Advertise ($75) = $6,811/yearNet Income: $5,266/year and this puts the Expenses as a % of Gross Income at 57.2%Still am over the 50% rule though, my only other variable seems to be to pin down Opex/Capex harder (which I would do regardless), but is it unrealistic to regularly forecast 50% for SFH in West Allis/Milwaukee area?

It's a wash, but is an expense at that time.Your notes can also be structured so that only the payments are sold (or financed) receive a lump sum today for the annuity assigned, but not the note.

@Huiya Xiao Another option I would consider is passively investing in apartment, car washes, hotels, self storage or ATM fund syndications.

Wash, rinse, repeat.

Theresa makes a good point above, it sounds like it will be worth a trip to bang out all the little things personally like removing decals, changing light bulbs and air filters, install doorbell, door stop, outlet cover, towel bar, clean gutter, power wash, screw the gutter downspout back on (5 min.) etc.... save yourself some money even with the airfare calculated in.

You can see there is plenty of space for a garage/breezeway... but I feel like it will just be a wash (10k to build, add 10k to listing price) Is it worth the hassle?