Gross Cashflow is $2500, mortgage at 1k a month.

I'm trying to determine if we should agree, up front, on a percentage of gross/net profit, at the moment that makes the most sense to me, but what do i know!

Id do 750 per door per year or 5-10% of gross income depending how new property is.Vacancy 5% .Cap ex 250 per door per year.

I was under the impression that taking 10% of the monthly gross rent would account for those capex items, but it sounds like what you're suggesting is to itemize them individually in addition to a flat 10%? 

Not only is the gross rent multiplier atrocious, there are more challenges and costs associated with being a landlord in California relative to the southeast.

All figures are using 5% gross rent each for vacancy, maint/repairs, and capex.

For most large operators, on the first of each month there is an accounting entry from gross potential rent to accounts receivable. 

California charges a minimum tax of $800 a year per LLC, and more if you have gross receipts in excess of $250k.

California charges a minimum tax of $800 a year per LLC, and more if you have gross receipts in excess of $250k.

@Jaysen Medhurst @Greg ScottHere is the breakdown of how I came up with my numbers; since I don't have a pro account I can't download the pdf:PURCHASE-Purchase Price: $649k-Purchase Closing Coost: $14,772LOAN DETAILS-Interest Rate: 3.2%-Points Charged: 1-Loan Term 30 yearsRENTAL INCOME-Gross Monthly Income: $5960EXPENSES-Property taxes: $272-Insurance: $500-Repairs & Mantainance: 10% ($596/Month)-Vacancy: 8% ($476/Month)-Capital Expenditues: 8% ($476/Month)-Electricity: $150-Gas: $75-Water & Sewer: $200-HOA Fees: $0-Garbage: $25-Other: $200I did as much research as possible for the numbers and the rental estimate is what I got on Zillow and is pretty spot on with similar properties in the area.