What you don't mention is what sort of neighborhood it's in, what level of collection loss you might expect, and you haven't accounted for ongoing maintenance or lawn work, etc..

I don't see any good reason why the rest of the nation should be stuck subsidizing their crappy property policy that artificially inflated prices and made the whole thing into a casino in years past.

New carpet, lawn installation and maintenance, updated lighting fixtures, paint, or maybe even a patio or deck installed are well within my skills if I have the time to do it (which, living in the place, I certainly would).I've got a friend who will be going to med school down there who I plan to live with, so when you factor in $800 or so in rent from him, PITI will come close to what I would be paying to rent a place anyway.Assuming thus far that this sounds like an intelligent plan (and if not, I'm all ears), here is an example of the type of place I would look for:http://www.realtor.com/realestateandhomes-detail/5372-Barstow-St_San-Diego_CA_92117_M20640-37129Basically, it looks like it would be a really nice home if the interior was cleaned up, a green lawn installed in the front and back yards, and on top of it all, it's a place that I would like to live in while I'm fixing it (unlike my rental properties, this is one aspect where emotion will factor into the decision).Also, what is your opinion on properties with a pool?

Do you also believe it’s because of the plan of the big banks to starve the market and artificially drive up prices in Q1?

I think on a low rent property any more than lawn service would be a bit much.

Mowing lawns, cleaning toilets...whatever he could find. 

You or I would want the same thing when we are selling.It really depends on where in NJ your buying.Hoboken is a sellers market, where you can expect to get multiple offers bidding up your asking price.Fair Lawn, where I live, is a buyers market where houses stay on the market longer and homeowners know they'll lower the price as part of the negotiation.What are you trying to buy?

He was able to water his lawn for years.

Rents and expenses are not directly correlated, and any attempt to artificially correlate them through percentages is mental laziness that will result in inaccurate estimates.

How about lawn care?