If it's low equity I generally show them -Selling w an agent, paying 8 to 12 per cent in not just commissions but closing costs, sellers concessions, waiting to sell costs, like PITI and utilities, and spruce up costs like fresh paint or mild landscaping-Renting, paying a property manager, risking damage and eviction costs, lost rent-option one - Owner finance - I take over PITI and maintenance -option two - I find a lease 2 own buyer for free, 24 payments, then house mortgage is paid off, you pay insurance and maintenance Seller picks his solution If he picks option 1 or option 2, I tell him how fast I can do it, and I dictate terms, I am the solution provider

I typically give a $50-75/m maintenance discount off rent to a tenant that is willing to do the small stuff and coordinate the big stuff for me.  

I typically give a $50-75/m maintenance discount off rent to a tenant that is willing to do the small stuff and coordinate the big stuff for me.  

The rent from my roommate and the second unit of the duplex cover my mortgage, insurance, taxes, maintenance, cap ex, vacancies, heat, electric, water, and internet!

You'll have to use the numbers that work with your strategy and lifestyle.Be sure to account for the following expenses in your calculations:Vacancy (10% of gross rent)Management (10%)Maintenance (10%)CapEx (generally 7-10%)ElectricOil/GasWater/SewerTrash RemovalSnow Removal/Lawn CareLegal FeesTo find deals that make the numbers work, you may have to explore outside of your immediate area to a 1-2 hour radius.  

Yes the cash flow does work out well with at least 10%-12% ROI cash on cash, even allowing for vacancy and maintenance projections.

What I can tell you is that there are deals in the DFW area that will cash flow at 10/10/10 (Vacancy/Maintenance/PM).  

Who handles the maintenance? 

If you are buying and holding then the nets to work into your analyses would be: (1) mortgage, (2) maintenance fees, (3) property taxes, (4) homeowners insurance, (5) water bill, (6) property manager if you do not intend to manage it yourself, and (7) future property maintenance, suchas roof & painting, and concrete.  

It keeps my maintenance costs down, and I can still sell well before any big ticket items come up.