I own and rent out a SFR that brings in brings in $300 after utilities and mortgage/taxes/insurance.

The occupied units, though paying market rents, were bleeding the firm with various utility costs (ie. $11k in fuel expenses last year on a 3 unit, 5 BR building grossing $27k.

Is it fully developed with roads and all utilities in?

A better approach would be to list ALL your monthly expenses minus housing costs (rent, utilities) and see where you are at with income vs. outgo.

@Fran Flanagan - Your estimates are pretty close but we also have escrow payments for insurance and taxes in addition to the utility bills.

So if I want to change a window, a door, replace more than X amount of sheet rock, add/remove/move a wall, fix any electrical, change out plumbing, replace AC or just about anything else I need a permit pulled by a licensed contractor otherwise the city will fine me, shut down my job and have my utilities disconnected if I don't comply.

I work that into my acquisition numbers.An older furnace, also drives up the Utility bills for tenants and they move out quicker because of it.

You can utilize them as subsidiaries of one another.

I plan to do that until I have a large enough nest egg that I am comfortable not setting aside more money.My ideal property is a multi-unit with all separate utilities.

nice) and have killer rehabs without the need to hire an interior designer and do extensive staging.