Multi-unit Property AvailableNorth Cental Texas, near major universityFinancial Summary Proforma Year: 2009 Scheduled Gross Income: $185,760 Effective Gross Income: $185,760 Operating Expenses: $108,659.84Net Operating Income: $77100.18Tax Rate: 2.39%Unit Mix Information 1 Bedroom/1 Bath No.

What types of units do you operate?

Good Point, I am looking into the operating expenses now to see what the numbers are.

Unfortunately, the deals are even worse than that, because there is a cost associated with the downpayment.Here's how I would evaluate these deals:Deal #1:Gross rents: $2,400Operating Expenses: $1,200 (half of gross rents:NOI: $1,200 (subtract operating expenses from gross rents)Mortgage ($249K, 30 yr, 6.75% NOO): $1,615Cash flow: $415 LOSS per month (OUCH!)

That rule says that operating expenses for rentals run 45% to 50% of the gross rents.

What kind of house has a 50% operating expense expectancy?

I'd liken it to the problems you find in a meth house (where an illegal lab has been operating)," he said.

Throughout the United States, operating expenses run 45% to 50% of the gross rents.

Understand the numbers (especially operating expenses)3.

Plus I have more exit strategy options.Choice is ultimatley up to each individual investor on what types of portfolios they choose to operate.