Your now facing vacancy, an overdo repair, and getting rid of a sour tenant.

. $400 per month into savings to cover a cushion for PITI, Vacancy, Capex, Repairs, etc.After 2-3 years, assuming all else stays the same, I would generate approx. $133 in monthly cash flow on top of PITI, Vacancy, Capex, Repairs, etc.Is this a deal you’d go after?

I specialize in the Property Management Industry in the Phoenix area and the way we write the lease agreements, handle yearly property inspections before allowing tenants to renew, have a deferred maintenance program to help keep the property in great condition, and get you the highest rents possible with the lowest vacancy times, it can make the process very easy and all you need to do is sit back and enjoy the cash flow.

My current focus is to only purchase 4+ unit buildings so if vacancy or other mishaps occur we are still able to pay bills and expenses with the other units while keeping some cash flow. 

Some pockets in Lawrence are appealing to me (although I know there are some rough areas), but one of my biggest concerns is vacancy.

I don't see those expenses reflected in your budget.Even if this property is brand-new, you'd be better off budgeting a higher percentage for vacancy, repairs, and capex. 

My average it over $400 per house after PITI and $200 to $300 in maintenance and vacancy.

Hi @Rafael Gomez when you calculate the potential cash flow of a rental property, you need to be sure to include all costs associated with buying, holding, maintaining, etc, like vacancy, costs to show and rent, capex, repairs, property management, etc. 

@Nicholas PotockiI take gross rents - Property Mgmt Fee - 8% vacancy reserves - 5% cap-ex reserves - 5% ongoing maintenance reserves - PITI = Cash Flow

So if your rent is $1000 a month and your PITI is $600, your net income is $400 a month (I'm excluding real, important costs like repairs and vacancy here to make this example simple - do not exclude these costs when running actual rental scenarios).