Example (Buy & Hold):Purchase price: € 150.000,00Downpayment: € 35.000,00Additional cost for buying: € 25.188,00 (legal, tax, agency fee, cleaning, mortgage fee)Renovation cost: € 10.000,00Monthly Mortgage Payment (PI): € 487,34 (annual interest € 2.267,28, annual principal € 3.581,91)Tax on income: flat 21%Total annual operating income: € 16.111,20Total annual operating expense: € 6.060,00Question:How do you calculate cash on cash return (ROI)? 

My family owns and operates our own company and we specialize in SFR and small to medium multifamily acquisitions and management.      

Do as you please if you are operating a hobby, adher to practice if you are operating a business.

(a) “Common Area Operating Expenses” are defined, for purposes of this Lease, as all costs incurred by Lessor relating to the ownership and operation of the Project, including, but not limited to, the following:(i) The operation, repair and maintenance, in neat, clean, good order and condition of the following:(aa) The Common Areas and Common Area improvements, including parking areas, loading and unloading areas, trash areas, roadways, parkways, walkways, driveways, landscaped areas, bumpers, irrigation systems, Common Area lighting facilities, fences and gates, elevators, roofs, and roof drainage systems.

Are you the operator?

Shortly after purchase, the operators closed the program and we decided to market the building as a residential unit.

(We can't legally deny her the right to operate it out of our property.) 

They govern the operation of your business.

That might be on the property management company that he was using but it appears that he has had knowledge of it for some time and continued to promote selling more properties to be managed by the same property management company.at this point I believe with all the buy backs and pending litigation he is trying to sell his way out of a deep dark hole.. it will take government intervention to shut that operation down. 

HUD has a budget and they operate within it, regardless of the number of properties or tenants in the program.