You take the gross income  and subtract out all of the operating costs and expenses (taxes, insurance, gas, electric, water, trash, lawn, snow, maintenance, CapEx reserves, management, etc).

Many condo associations never maintain anywhere near enough in a reserve account for repairs and replacements.

I downloaded my own operating Agreement and Applied to reserve the name.

And do you have the reserves to manage 16 properties from the get go? 

Hi @James Sea,Obviously you would need your reserves to be held in a very liquid account. 

We’ve confirmed that he is all officers for his corporation, but he’s agreed to add his wife as an officer as well who must follow through with the President’s contracts in the event he is incapacitated.

I’d also double the vacancy to 10% and build in PM fees 10-12% for safety even if you plan to self manage, in case you end up not managing it for whatever reason you should have that built in and put it in a reserve fund.

Your tenant buyer for the lease option is most likely someone who has cash reserves but less than desirable credit profile making it hard for them to buy a home and get financed with traditional lending. 

If you’re working out of a home office, is that office reserved strictly for business?

She has blocked my number and hasn't returned her keys, I can't get a confirmation from her stating that she moved.