Hi Jonathan,At a quick glance the expenses look a bit light (currently shows about 38%, where a quick rule of thumb is 50%).

It is now worth $209,000, rent has covered expenses over the years, do the math it is a return of over 20% annually.  

Others will know better than I but I'd consider avoiding the property manager at first - They are expensive and rarely do a better job that a caring/motivated owner.  

Ann arbor is too expensive and Ypsilanti taxes are high.

How do you calculate the expenses of the property? 

But what I thought they said is to figure out the cash flow and then divide it by two because history has tended to show that unexpected expenses (new water heater in yr 1, roof repair yr 2, etc) tend to eat up about half of your earned cash flow.  

Although its more expensive and takes more effort, you definitely get a high ROI on your marketing compared to the "shotgun" approach. 

I make a decent salary for the Bay area, have a good amount of savings and don't have many expenses outside of rent and student loan payment. 

Billing back water to tenants will bring expenses to 37%My offer is $240,000Thoughts? 

Im curious what landlords in the Omaha / Bellevue area do for utilities? Is that seperate or included, and if included how much?