@James FloydYou don't have any employees in any of your businesses do you?

I use to think PM cost 10% of gross income.

It doesn't bring the annual gross income which is huge in helping someone to decide if the deal is worth it.

The property features two 1,400 sq ft suites on the main level (one currently leased) and over 3,000 sq ft on the upper level, with 750 sq ft already occupied, 3 small office spaces (+/- 250 sq ft each), and a basement tenant with 1,400 sq ft of storage space.The building generates $6,000 in monthly gross income from its five tenants, but with full occupancy and market-rate rents, it has the potential to bring in $10,000+ per month.Given its historical significance, stunning architectural details, and location, I’m curious about your opinion: Would this property be more marketable for sale with or without the current tenants?

Think of it this way: if we were to screen tenants on criminal background, credit, eviction history, landlord references, and income (3X that of rent and employee verified), even with 25 tenant applications, it's difficult to find a reliable tenant to match all those criteria.

@Ivana Ivanovic I would say 8% is low to cover both vacancy AND repairs.If you expect to incur just one month of rent lost every 12 months, you'd be looking at an 8.33% (1/12 of gross annual income) vacancy rate.And, even for a brand-new build, you're going to have some repair/maintenance costs as long as you've got human tenants.

Next...are Maintenace calls handled by your hourly employees or are do they 3rd party this out? 

I have 9 employees in the US and 3 overseas.

I have a handyman that I pay the equivalent of 3% of monthly gross, and I use Buildium pro to self-manage my 14 units.

I believe in practice it does not actually offset the capital gains but reduces my taxable income dollar for dollar with the loss, as long as my Modified Adjusted Gross Income (MAGI) is under $150K.