Total income: $8,900 monthly (gross).

Another consideration:  Your gross income (the 75% that is counted from a rental property) may not be considered until the property is rented for one year.  

If you can count a 5% vacancy - you aren't much about 1200/month - and that is assuming you can get 1400 in gross rent. 

In addition to the cap gains, I think the gross profits affect your gross income on your taxes - in turn impacting AMT and other taxes.   

For the properties we wholesale we dont use a % or dollar value of gross returns to arrive at a cap rate.

Perhaps the way would be $25MM in gross assets.....my point here is that no one has passive income of >$500K doing things as described above.

Just looking for some takes here ---Option 1) I have a potential deal for a 4 unit grossing 2200/month in B area with B+ property.

. $900 x 4 units = $3600 (monthly gross income )$3600/ 2 (50% rule) = $1800 (net monthly)$1800 x 12 (months) = $21,600$21,600 / .07 (7% cap rate) =$ 308,571 So after I was comfortable with the valuation of 308 I estimated the repairs to be at least $20 a square foot plus all the mechanical and electrical etc. the building is 3800 sq.ft.

I have no employees to baby sit, no perishable inventory to move, no franchise fees to pay, and no store to maintain.

The listing price is 65k but from what was listed, the gross rent is 1800.