This is the least expensive construction type for housing with parking and commercial on the first floor with residential on topAnalysis:- Land acquisition / closing costs: $1.1mm - Construction/architect costs: $225/sq feet x 45,000 sq ft = $10.125mm- Total Cost: $11.145mm- Average unit 850 sq ft x 32 units x $2.5 gross rent per sf = $918k gross rents- 50% expenses = $459k annual profit- ROI: 4.12%This is for a project in the Bay Area (where I assume construction costs are higher).

PM costs me 35% of the gross, plus expenses. 

I would love to purchase 2-4 unit properties here in TX, but almost everywhere I have seen the total gross rents are <1% of asking prices (and these frquently sell quickly).

This would include accruing approx 15% from gross rents for Capital expenditures and repairs/vacancies.

Hi all , I just want to get other opinions Contractors vs Employees ?

I looked into a few property management companies but they want 10% of the gross rent plus other fees to renew leases and file evictions, etc.

Garnishments for my employees, for example, almost always go to my registered agent. 

I am not sure what rule you are referring to about 50% - but the quick rule of thumb that I use when talking to a seller on the phone is to take 50% of the gross income (the gross they give me without verification)  and see it as the estimated  NOI and determine the CAP rate based on the asking price.

I've had good luck getting deals in the suburbs of Detroit near the airport and have found excellent tenants - 100% airline employees.

What about Gross Rent Multiplier?