But to me, the main disadvantage is that, as @Tom Goans mentioned, if you get fed up by your tenants and throwing in the towel, you can pretty much get rid of your 4-plexes or fewer a lot easier.

No couches, no soft chairs, no clothes closets and no brand new cars with the exception that I did buy my wife an $80,000 Mercedes SUV about 7 years ago for a present and today the car has less than 2,000 miles on it because she doesn't want to feel like she is showing-off to her friends and our tenants.

Smaller costs are things like buying new towels/sheets every 4-6 months, and getting small welcome gifts for our guests. 

-Replacing just glass $150 w/ labor -Replacing whole window $300Sub flooring (holes/softness)... -$400 (not bad)-$1,000++Any big ticket items.... like A/C, water lines, electric issues, etc.? 

Here is our situation:ARV                       $110,000Purchase Price       ($58,000)Projected Repairs   ($15,000)Profit before soft   $37,000Our deal appears to be a home run before considering the soft costs.

My soft hearted wife insisted we split the difference.

Thanks, I was thining 10% & 2 points to any private or soft money lenders that want more information and considering packaging them as one deal as each needs $10-30k...

Now it's going to be tougher for a lender to let this slide for any of a few reasons depending on the lender1) when many lenders quote their loan to cost (LTC) they exclude certain soft costs from allowable costs.

@Robert Tumulty Methinks you’re too soft.

I have been to well over 100 different REIAs across the nation.