With a typical 50% PGR - NOI ratio, that produces a 6% cap rate on this income stream.

Hello, BP community I'm only a couple days new to BP im still exploring all my pro features i'm serious about real estate and I love what I do.

Expect your cap rate to be lower.  

Lots of inheritance landlords here who never raise their rent and don't want to manage their properties, but will never sell because the homes are paid off, in a family trust, and they're paying minimal property taxes (CA prop 31 cap).The plan: - I offer to sign a 2-year lease, pre-paying one year of rent up front, the rest divvied out monthly over two years.  

The RMLO issue has been discussed in detail here so you should use the forum search feature.

My guess that would be a very low cap rate property (assuming 50% expenses would be a cap rate of 3.78%).That would not be something I would be interested in.

I won't know expected cap ex needs until I find the property I want to buy, but I suppose I can always budget in my savings for a certain amount and only go after properties that fall within that range.

I would suggest you use the search feature on this forum as there have been many threads that have dealt with this already.

At least a few years ago, the cap on section 8 was pretty low in comparison to market rate for where our building was located.   

Additionally, I like using 1% of purchase price as a general rule for buy/holds in the Nashville market.Rent = $1300- PITI $850- PM $130- 5% cap reserve $65- 5% vac reserve $65= $190 cash flowHow I structured the deal:This is the tricky part and being the first subject to deal I’ve ever done, I hired an attorney.