The neighborhood is a C on an A-D scale - poor, but not especially crime ridden.Asking cost: $69,000 (let's assume for now I cannot get them to budge on price)Initial Investment: $17,475 (25%)Rental income: $15,600 annual ($650 per month per unit)Assumed Annual Costs: $12,07610% vacancy - $1560$1900 Property Taxes (estimated increase from previous year's actual)$900 Insurance (this is really a guess)$1000 annual snow removal and "landscaping" (no yard)5% repairs budget and 10% capex - $2808$720 water bill (estimated)$3188 mortgage (30 years @ 4.5%)Cash Flow: $3,524RoI: 20%CAP Rate: 10%Can you see any obvious errors in my planning?

With this being an REO the seller (bank) went with our cash offer).Improvement Costs: $2,100 (re screen porch, Landscaping (bad shape), painted entire inside, drained & filled 10' x 8' deep pond, Appliances) For a newbie, this house did not require much work which is not typical for houses in this price range in my area.

Regarding maintenance, a few things to check up on and improve: landscaping, exterior lighting, roof, HVAC, parking lot (specifically potholes and restriping), signage, interior common areas.As far as tenanting, easiest (and free) would be Craigslist.

While she was there with them, the two ladies got so excited about all the stuff THEY could do with the landscaping.

New townhome construction, the Metro Light Rail, new restaurants, a weekly farmer's market, multiple Crossfit gyms, a makerspace, a hike/bike trail, and art galleries are recent additions to the landscape now.

I am very handy and have done many construction projects including plumbing, drywall, framing, light electrical work, landscaping etc...

I'm not looking to do anything to crazy, just enforce the removal of broken down cars, landscaping, trash pickup, and condition of homes on the outside. 

Lots of people get paid behind what flippers do, contractors, their employees, realtors, landscapers, lenders, title companies....you get the picture.  

That one huge piece of legislation completely changed the landscape of that area, in large part due to their pact with OHSU, whether we like it or not.

The 50% rule says we would lose about $300/month as long as there is a mortgage but I won't be on the hook for roof, water heater, landscaping, etc.