The triplex the owner pays for everything but electric whereas on the other properties the tenants pay for everything - so the tri has about 60% in ongoing expenses rather than 50%, I would say.This guy is not what I would say  a "motivated" seller.  

Are you planning on going after branded or independent hotels?

This has been ongoing for about 6 months.  

I'm new here to and planing on going to the meetup.  

And they get worse if you use a PM (which I always do).If these numbers were the same, but you didn't have that ongoing expense, these numbers get close to making sense.Assuming you can afford a small annual loss, holding this might make sense.

I know this is old, but for anyone reading this in the future, here are my suggestions.First I'd make sure you're clear on what services you are getting for the price.I'd ask about their processes they go through for leasing your property and then for ongoing management.

I am planning on going to the next one though.

Also, the $600/yr might cover your capital reserve (to fund eventual replacement of roof and mechanicals), but it leaves nothing for ongoing maintenance and spending at unit turns.

I guess if it provides a good return and it's a good area then keep on going!

Are you going to pay him a set APR for his money, or just a portion of the ongoing profits and/or proceeds from the final sale/refi?