My partner and I are in negotiation for a 6-unit property in NE Ohio, below are details: 4 rented, 2 vacant / average rent $735 (4 rented units $720, 2 vacant $775)Owner pays water, sewer, trash2 br, 1.5 bath, roughly 900 sfGarage with door + extra parking areaRoof in good shape, air and furnace in good shapeRealistic gross all units filled: monthly $4,400 / yearly $53,000We walked through both vacant units, very clean and basic.

The lender will always project the FUTURE rent automatically ( they don't know if you will sell it or rent it after all so have to assume renting) and give you extra income at 75% of gross projected rent as qualifying income for the loan approval, even on vacant trashed properties.

If you have to go out of town, why not pick a place where things are happening, so that you might get some extra appreciation when you do sell.If you were in love with this town and planned to retire there, or had some special family/other connection, I'd feel differently.

It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees.

But wait... what happens to the extra $10, you ask?

You might want to spend the extra money to get an atty. to draft the note and mortgage to ensure it's done right. 

And we got lucky again because the house never burned down and we sold it for a nice profit.

It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees.

do you list the property for a price and let the tenant know that there is an extra bill?

I have ways to get the big take down money covered already, it’s the little extra per house expenses  I’m hoping to get access to.