I understand the numbers don't look great, I just want to know if I'm being too conservative in my estimates (especially on the turncosts, capex, maintenance)Note this analysis assumes a cash purchase.Property InfoMyFourPlexOccupancyOccupiedSize2000 sqft | 1 bd apt homesYear built1960'sNeighborhoodClass CSale Price (USD)165,000.00Closing Costs1,200.00Rehab + Repair2,000.00Total Capital168,200.00RentMonthly Rent (4 units)1,935.00Vacancy Rate0.09Annual Gross Rent21,130.20Annualized ExpensesProperty Taxes2,100.00Property Management Fees (10%)2,322.00Leasing Fees245.00Property Insurance2,200.00HOA0.00Repair/Maintenence1,400.00Utilities (Lawn, Trash)1,600.00Annual Turncost (Property management fee + 1000/apartment)5,935.00Total Operating Expenses15,802.00IncomeNet Operating Income5,328.20CapEx Reserves1,600.00Total Net Cash Flow3,728.20CapRate3.23Cash-on-Cash (post reserves)2.22

(Works out to be just 19% of gross rent.)

I’m actually switching a property over to professional Property management due to my time is worth a lot more than the percent of gross I have to give up.  

MOST LAWSUITS ARE GOING TO CLAIM EITHER NEGLIGENCE OR GROSS NEGLIGENCE, AND A RENTAL AGREEMENT DOESN'T CHANGE THAT.- This slip and fall occurred during the rain supposedly, and the steps were wood. 

$26,000 gross profit Lessons learned?

I wouldn’t like to think a 1 bed 1 bath can rent for much more than 925-975 , I’m researching the rates currently but just off the top of my head , 900-950 is fair for 1 bed 1 bath for downtown and won’t have a problem with vacancy and renting out i estimated expenses at 41 % gross income from spread sheet They had it at 30% Thoughts and opinions

What is your rent, both gross and net?

Gross cashflow $600-650/month.

Claimed CAP rate is 7.25%, Gross rent multiplier stated at 4.61.Annual numbers:Rental Income: 3,126,240...less vacancy of (343,866) gives us a Gross Income of $2,782,354.Property taxes last year: (380,472)Insurance:  Not known yetProperty Management assumed at 10%: (278,235)Advertising not known - Used ($5,000)Utilities:  Each unit pays own but assuming ($1500) for public lighting and will add clubhouse/pool expenses when I get the financials.Repair set aside amount at 5%:  (156,312)CapEx set aside amount at 5%: (156,312)Total Expenses:  (987,832)NOI:  1,794,522Mortgage Payment (looking for 100% financing at 11.5% for 25 years): (1,573,494)Total Cash Flow: 221,028I'm requesting the financial package to get more details. 

@Anthony Perkins, is the $7,000 gross income?