Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

Asking Price: $575kIncome:Gross Rent: $8000 (fully occupied)Laundry Income: $175P&I: $3225.53Vacancy: $817.50 (10%)CapEx: $408.75 (5%)Repairs: $817.50 (10%)Management: $800 (10%)Taxes: $416.67Garbage: $90Water/Sewer: $80Insurance: $672 (Replacement cost valued at about 900k)Misc: $355 (Pest Control/Lawn)This obviously doesn't make sense at asking, 6.6% ROI, ~$500 cashflow.

Snow/Lawn $1,200/year.

The DP artificially inflates cash flow therefor it must be remove from the equation to separate cash flow generated by the property from that purchased with their cash. 

Mini accountant rant...If the difference between acceptable NOI and unacceptable NOI is the cost of lawn care, the investor isn't an investor.

Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

Get lawn cut, bushes and tree limbs trimmedFresh smellSpend rehab money where you get the biggest bang (i.e. bathrooms, kitchen, paint, flooring, fixtures, etc) vs roof, condenser, hot water heater, etc (assuming they are in at least okay condition to the untrained eye)

There are opportunities in rent controlled housing because those buildings are artificially worth less than they “should” be.

@Luke MarlarYes, the renters pay their own utilities and are responsible for lawn maintenance.  

They fail to make their last two payments, steal your washer and dryer, their dogs have destroyed your carpet and dug up the lawn, there are several broken windows and holes in the wall, and the place is filthy.