But, am I overestimating on the accrued expenses like vacancy, maintenance, ect?

My 2cents - do not invest in HOA community property, and if you do, make sure that they have an outstanding reserve study, no or very minimum delinquency and up to date maintenance.

They are trying to sell their properties due to headaches and just getting out of the business.I looked at all those properties and most have a lot of deferred maintenance AND they wanted retail prices for them.

But before I go into that, here are the numbers:Ask: 83k, 20% down, reno 4k, closing 5k = total cash required 24krent 8505yr fixed on 30year mortgage 272.265% vacancy, 5% maintenance, 10% capex, 8% PMproperty tax 1000, insurance 600Seeing a monthly CF at 216, cap rate 6.82% cash ROI 9.9%Of course, the rent is very conservative (I can probably rent it out at 850 without doing any reno). 

The house could rent and provide only $80 positive cash flow per month after all expenses including property management, maintenance reserve, etc.Equity in home after purchase: $50k roughlyCash on Cash: Only 3.8% BTW: There are 0 rentals available in this area and most don't allow pets and we think we can make this our niche by allowing them. 

Some investors will be attracted to a high yield but if that yield comes with a large personal liability for the underlying mortgage, an ownership share of a property in a poor area, or one that has a lot of deferred maintenance (all situations that may leave the investor vulnerable to a capital call) the yield will not be as attractive.

(Big assumption, I know).I tried to find the Net Op income by applying a 20% vacancy factor, 2014 property taxes was $5,700, estimated maintenance $3,000 and insurance of $1,500.

(Big assumption, I know).I tried to find the Net Op income by applying a 20% vacancy factor, 2014 property taxes was $5,700, estimated maintenance $3,000 and insurance of $1,500.

If I go to Home Depot and spend $500 on a new bathtub, a door, paper-towels, a new screwdriver set, windex, and valve stems for a faucet; would I break these down into supplies, cleaning and maintenance, and repair with separate entries?

Do we invest in a 3-4 unit older home with good rental history but probably needs quite a bit of maintenance (and might not attract the best quality tenants at the rental price point) or do we go with a newer duplex that is basically turn-key but doesn't have a rental history because both sides were owner-occupied?