Either there's enough cashflow built in to cover those periodic vacancies or there's not. 

Things that I didn't see you put down: Vacancies, capital expenditures, and property management

Vacancy rate is 5%.Mistakes we made: When we offered 85K I believe we got a phantom bidder.

But in MinneSnowta if I have a vacancy in the late fall, I might be shoveling snow for awhile myself and January/February are next to nothing because it's to cold to move.

The expenses get heavier as vacancies rise.The cheapest per sq ft also means nothing.

Of course, in this theoretical example we don't have any repairs that needed to be done to rent  the units or any vacancy while those repairs were underway...You can use the calculators under the "analyze" tab at the top of the page when you have some real numbers.My opinion on property  management differs from Arlan's.

Talk to your local property management companies to find out what their vacancy rates are, as this varies widely based on the local market. 

I would consider looking in areas/states that have high cap rates, low vacancy rates, and offer rental mgt to handle the property.

Looking for a realtor who can assist ASAP with a drive by inspection and photos of a property we are about to buy the note on NW of Charlotte, West on the 85, up the 321 N.Looking for type of neighborhood, rentals or owners, vacancies seen, valuations, and crime in the area, etc.While we will try to work out a modification to get them paying again, we might have to either get a deed-in-lieu and do a short sale, or go through foreclosure process & sell the house after that.We would want the realtor to be with us all the way, and will pay you full commissions for any help in selling it.

Based on my numbers I have projected solid cash-on-cash returns (includes vacancy, property management, taxes, repair budget, etc.