Costs Non-recurring Closing costs - 6% of purchase priceMonthly  % Vacancy and Credit Losses - 5-10% of monthly rent Property Management Fees - 8-11% of monthly rent Real Estate Taxes - actual from folio # Repairs and Maintenance - 5-15% of monthly rent Rental Property Insurance - 2,000 Homeowners/Property Association Fees - 0 Capex reserve - 1% of purchase price Utilities  Water and Sewer - tenant Gas and Electricity - tenant  Garbage - tenant Cable, Phone, Internet - tenant - tenant

Structural issues, terrible smells, no HVAC, Plumbing, electrical, walls, ceilings, etc... wood rot, termites, asbestos, you name it!

Water and electricity can really add up.Rental license - I think this is $55/year in Philly right now.

@Melissa Perez there are increased costs across the line for some building materials, but not others...lumber is a bit out of control right now, but electrical and plumbing fixtures still cost the same, etc.

Prices are a bit higher but there is a large demand for jobs between the Sub Base, Electric Boat, National Guard, casinos, etc.

I have dealt with every CAPEX project under the sun (foundation repair, roof replacement, sewer line and water line replacement, electrical overhaul, full cosmetic renovations of interior units etc.) and stuff you are not expecting or budgeting for is going to pop up. 

Even if submetered you'll see most active rentals only charge electric and gas if you take a look at your competition.

The units have heat pumps and the tenant pays electric which makes my cash flow great and I have no maintenance calls.

For reference I am working on a 3 family full rehab, plumbing, electrical and light framing of closets and doors. 

@Matthew Paul I thought of doing the whole unit electric.