I wouldn't expect that without decent funds to allocate towards remodeling a fixer-upper, but there are 2% properties in this market if you purchase wisely.

That means more money to be allocated in deferred maintenance.)-  What is the status of the roof, electrical and plumbing?

While it is no longer an issue, in the beginning years, the cash required to acquire and maintain the home could have been allocated to investments that would have given me financial freedom much sooner.

I realize this number will depend on your personal financial and life situation, but what percentage of your overall investment portfolio should be allocated to investment real estate?

What this shows is on average virtually every large city is cash flow negative when allocating for all costs using high LTV financing.This implies that rents need to increase.  

Try allocating the funds differently.

Many of these have cost seg studies completed so most of the tax benefits are stripped out the first few years so the later years are cranking out taxable income.Next the operating agreement will detail out the income allocation, rights of each member, and your right to distributions. 

We would fund 60% of the transaction price + 5% additional money allocated towards improvement.

An expense ratio if 35% (if accurate & by the way mine runs 38%) says it's being managed well - - just look for that dreaded Deferred Maintenance problem.Make heavy allocations from NOI to CapEx the first year and you'll cover the bases.Are Y O U ready to manage 23 families and what are the State Regs for Onsite Manager? 

In order to defer all tax you do have to purchase at least as much as you sell but you could buy multiple properties using the proceeds in whatever allocation you choose.