The same tenant owned a roofing company and we made a agreement on the roof for two free months of rent in order for him to do the roof.

Busted pipes, gas leaks, etc. are yours.

The property is brand new and will be under warranty for the next 3 years, so I do not foresee needing to replace a roof or water heater in that time.

For example I know in the UK that popular rental properties are more along the 0.5% rule, but property taxes are taken care of by the tenant as well as maintenance costs are much lower due to things like non shingle roofs, no grass, all brick solid structures, etc. so a portion of that 0.5% is made up in other areas.

He does mostly commercial office buildings, but he is not very experienced in the rehab side of real estate so I am hoping to get some experienced advice from my readers.Here are some details I have gathered on the property: It is an 8 unit apartment building listed at $227,000It has 6380 Sqft.2 bed 1 bath per unitBuilt in 1960Current owner bought it for $100,000 in 2018Located in the lesser side of the cityFrom what I understand the seller was in the process if renovating the property in which they finished the outside to include a new roof, paint, windows and some landscaping.

More units under 1 roof.

One house may need a new roof while the other one still has 15 years of life left.Too many variables.

Hi @Tim Herman,Sorry, but yes I got my numbers using the buy and hold calculator with 2% vacancy (realistic number in my market), 5% Maint and CAPEX (house was just fully renovated including electrical and plumbing with impact windows, roof was done in 2015) and 8% Management. 

I outsourced the roof, AC, Electrical and Plumbing.

The roofer said they never reinstalled the skylight surroundings during roof replacement and new installation.