My financing is based on fixed rates and I make sure that I have enough wiggle room in my rent assumptions that if rents freeze or need to drop a few dollars to be competitive in the future, I'll still cash flow albeit for less, which is fine.

@Chris Taylor just work from the assumption that everything on craigslist is a scam, and you'll be fine.What type of investments are you looking to make?

Actually, this rule was established with the assumption of an average retirement of 25-30 years (Say, you retire at 65 and die at 90-95).  

Not looking to do any major value adds and I'm okay with getting moderate returns.Market: Kansas City, MOOffer Price: 200,000ARV, per Seller's financials: 215,000IncomeGross Rent: $36,600, assuming full occupancy although 1 unit is currently vacantVacancy Rate: 25% (I know this is high but it's accounting for 1/4 units being vacant)Effective Gross Income: $27,450ExpensesTaxes (from seller): $1,674Insurance (from seller): $1,434Lawn Care (from seller): $400Trash (from seller): 900Electric (from seller):1,620Water and Sewer (from seller): $3,356Legal (my assumption) 1,000Property Management (my assumption): $2,745 conservatively underwriting to 10%, but will try to negotiate to hopefully 6-7%Total Expenses: $13,129 (~48% of Gross Income)NOI: $14,321Interest Rate: 5.5%Loan Term: 30 YearsDown payment: 25%Cap rate: 7.16%CoC: 6.04%DCR: 1.4Plan: Hold for 10 years, Refi in year 6 or 7.

ARV is roughly $125K and looking at potentially a cash offer at 60-70K with the assumption there will be 25k-30k in repairs.

This is a somewhat naive assumption.

Big assumption here, but let's also assume in your secondary market that a property manager will mostly be handling smaller buildings averaging 10 units each and can manage up to 10 of these effectively at a salary of $40,000. 

So, I seeing a lot of assumptions about the ring without really knowing any details, so I guess I'll clear that up.

However, once we remove those assumptions, you can make accelerated depreciation work in your favor.

ARV = $240,000Rent = $1750/moSome quick assumptions in the BP Calculator show your numbers around this:$1,750.0 0MONTHLY INCOME$815.00 MONTHLY EXPENSES$935.00 MONTHLY CASHFLOW4.68% PRO FORMA CAP$11,220.00 NOI$147,500.00 TOTAL CASH NEEDED7.61% CASH ON CASH ROI18.70% PURCHASE CAP RATE