I'm interested in investing in SFR's and small 2-4 unit multi-family properties in the Inland Empire, looking to utilize the BRRRR strategy (and possibly the occasional flip).

Assumption 1:  If the tenants pay their own utilities the expense ratio should be around 30% (in a well run park)Assumption 2:  if the owner pays the utilities the expense ratio should be around 40% (in a well run park)Assumption 3:  Do math for a 10 Cap-it works for any Cap rate you choose including  positive or negative*************************************************************************************************************************Net operating income=gross income - expenses Using the expense ration of 30%  => Net Operating Income*(1-expense ratio)=> NOI*(1-.3)Therefore:NOI/yr=(#lot)*(rent per lot per month)*(12 month per year)*(1-expense ratio)Cap Rate=NOI/Purchase pricedo some 8th grade algebra followed by some 6th grade math (dividing with a decimal)Purchase price=NOI/Cap rateTherefore:Purchase price{tenants pay utility}={#lots*Monthly Rent*12*(1-.3)}/0.1 =>84* lots * rentPurchase Price {owner pays utilities}={#lots*monthy rent*12*(1-.4)}/0.1 =>72*lots*rentThere are the 72/84 numbers derivedIts not rocket surgery.  

- it's always good to see another Hoosier utilizing this great site!

As a conservative estimate including taxes, insurance, 5% vacancy, utilities, and repairs we would have been netting over $800/month.  

The issue with ONLY using this method as a way to invest is that it fails to take into consideration: 1) vacancies and bad debt (i.e. uncollected rent); and 2) operating expenses (including: taxes, insurance, repairs & maintenance, capital reserves and utilities, property management, super(?)).

From this data, you can utilize a website bestplaces.net that will give you a breakdown of the percentage of homes that sold, in various price ranges, for a given zip code.

Are there bad debts owed to utilities - a very bad sign?

From this data, you can utilize a website bestplaces.net that will give you a breakdown of the percentage of homes that sold, in various price ranges, for a given zip code.

Regardless of what type of loan you utilize, the taxes and insurance will be the same (though some lenders may offer/require escrow for these items).

But I have a sense that this may be a fair asking price.I would normally also probably go to things like rentometer, apartments.com, zillow, and not sure what other sites to see if what the listing says about $500/month is normal for that area.I'd probably then double-check to validate with the county website to verify taxes have been paid.And I would certainly want to touch base with the listing agent/owner to understand if they could supply a rent roll, utility costs, better understanding of who pays for what, how long the leases are good through, if any new CapEx-related equipment was purchased recently (or how old this stuff is).