@Thomas S. we did buy that refrigerator you described, at the outlet, and guess what they had to come and take it away.

Other areas outside of Columbus are starting to blow up like Delaware with their new Outlet malls and city expansion they are doing.  

Allow for a large fudge factor for unexpected costs (as well as quiet costs such as insurance, utilities, etc).  

I value my time too much to be willing to stress over unexpected repair cost or something that could literately ruin my plan.4.

Purchase Price - $650k3.5% Down - $23kUpfront PMI - $11k (1-2%)Closing Costs - $17k (2-3%)Upfront Costs - $50kInterest Rate - 4.15%Rents - $48k/yr or $4k/moReal Estate Taxes - $7k/yr or $600/moHome Insurance - $1.2k/yr or $100/moMonthly PMI - $4.8k/yr or $400/moVacancy (2%) - $1k/yr or $80/moRepairs/Maintenance (5%) - $2.5k/yr or $215/moCapital Expenditures (5%) - $2.5k/yr or $215/moTotal Operating Expenses - $19k/yr or $1.6k/moNOI - $29k/yr or $2.4k/yr (4.5% cap rate)Mortgage - $36k/yr or 3k/moCash Flow - ($7k)/yr or ($600)/mo (-15%) COCR$650k appreciating at 1.5% annually would estimate the future property value to be around $1-$1.5mm.My projected costs would be:-50k upfront cost/investment -$40k for 2yrs of living in one unit -$200k negative cash flowing ($7k)/yr for 30 yrs-$100k other random unexpected costs-$400k for Total all in costs throughout process Net Profit $1.2mm - $650k - $100 (closing) = $450kTotal Return $450k/$400k = 105% or 3.5% annual

Make sure it makes sense, and that you have a comfortable margin to cushion any unexpected expenses.  

@Whitney Hutten...Any unexpected change.  

Should outlets be grounded?  

@David Rutledge Deferred maintenance could be as simple as ripped window screen, cracked plate covered for electrical outlets, small burns on counter tops from hot pans, sealing a small leaking pipe with duct tape, not touching-up the paint, trimming trees that overhang roofs, etc. up to maybe a little bit of bowing in the floor because some water was there at some point. 

If you're able to get an extra $100-200 in rent, that would give you a little more room in case of any utility fluctuations or unexpected expenses.With you breaking even, long-term I see this as a good opportunity.