NOI 3796 not including the loan for the down payment Gross income 9353 (includes 8% for vacancy)Cash flow 481 annually not including the loan for the down payment - 3719 cash flow including loan for down payment Curious if I did these numbers correct?

My calculations above were based on the assumption that 50% of gross revenue would be spent on operating expenses, which means NOI would be 50%.  

Just read an article today saying that you should NEVER buy any income producing real estate that does not have a Gross Rent Multiplier (GRM) of more than 8.iow, A property renting for $1,250 a month, or $15,000 a year should be purchased for no more than $15,000 X 8 = $120,000.I've NEVER been a big fan of GRM! 

Bathroom and kitchen are totally ugly and gross, but look like they would be functioning (house has been vacant since January). 

You're clearly thinking in terms of a gross or nominal return.

Typically lenders count 75% of the gross rent as income. 

To represent these as safe cash flow plays for an out of state investor is a gross misrepresentation for some locations.

It seems there would be an averaging effect to justify a larger quantity of less expensive (lower rent) properties, both on the expense and the income side.Another similar question: would you rather have 10 houses worth $400,000 that bring in $X per month gross, or 3 houses worth $400,000 that bring in that same $X per month gross?

Projected rents are at a minimum of $800 per side, so a gross rent of $1600 minimum..

Even as much as half of the total gross yearly rent for all expenses still gives you a 14.34% cap which is excellent.