Run the numbers this way and make sure to include property tax, capital expenditures and repair estimates at 10%, vacancy factor at 5%, property insurance, etc.

But definitely getting some prices on I'd think and then figure out how long it would take to make back the expenditure in increased rent.

Now I don't take into account eviction costs and do 9% each for Property Management, Maintenance, Capital Expenditures, and Vacancies. 

I'm an HVAC contractor so I can handle all Cap expenditures for minimal cost, including roof, remodels, etc.

.$42.83/month taxes$65/month vacancy$65/month repairs$65/month capital expenditures$65/month management (I will pay myself to manage).$322.83/month Principle and InterestMonthly Cash Flow: $8.97I know This isn't a great cash flow deal, but I would essentially break-even until the property is paid off in 10 years if I held it as a rental.The other scenario, which I am leaning towards is to sell to an owner occupant with a wraparound mortgage.I could increase my cash-flow substantially, get a decent down payment, sell for a higher financed price, charge a much higher interest rate, and enjoy less management headaches.If I sold on a wrap I could sell for $39,900$5,000 down (tax refund time soon :)$34,900 amortized for 15 years @ 12.75% Interest = $435.84/month PIThis would allow me to make money on the front end ~$4,000 and make $133/month cash-flow.I could also play with the numbers a bit to make a higher IRR, but this seems like a doable scenario.Would you buy this?

You could arrange for the sale through a local realtor as a way of helping her.I think the biggest risk is owner financing to an owner occupant who depletes the property's value by not maintaining the capital expenditures (roof, systems etc).

How about expenditures that are depreciated over 7 years like a new fridge?  

or capital expenditures, etc.), so I'm not sure how much I trust their $62,8xx yearly profit projection.

The HOA rules are strict, and as an owner of 7 units I would be part of the HOA board which makes decisions concerning repairs/upgrades/expenditures.

) $0.00 $0 General Vacancy Loss 10.0% $9,240 Expenses Monthly Annual Fixed Electricity $0.00 $0 Water $66.67 $800 Sewer $0.00 $0 Garbage $15.50 $186 HOA $0.00 $0 Insurance $415.00 $4,980 Taxes $448.83 $5,386 Other $20.78 $249 Variable Repairs and Maintenance 3.0% $2,772 Property Management Fees 20.0% $18,480 Other Capital Expenditures (Reserves % Gross Income) 3.0% $2,772 Market Assumptions Market Rent Growth (per annum) 2.0% Expense Inflation 2.0%