Retail rate sheets by contrast have operating expenses built into them and do not need to be marked up. 

Property Purchase Purchase Price $ 215,000.00 $ 215,000.00 Down Payment % 30.00% 30.00% Down Payment $ 64,500.00 $ 64,500.00 Mortgage Amount $ 150,500.00 $ 150,500.00 Mortgage Interest Rate (annual) 3.500% 4.375% Mortgage Amortization Term (years) 15 30 Mortgage Monthly Payment $1,075.90 $751.42     Property Rental Income Annual Vacancy Rate 0.00% 0.00% Monthly Rent - Unit 1 $ 1,700.00 $ 1,700.00 Monthly Rent - Unit 2 $ - $ - Monthly Rent - Unit 3 $ - $ - Gross Monthly Income $ 1,700.00 $ 1,700.00 Potential Annual Income $ 20,400.00 $ 20,400.00 Less: Vacancy $ - $ - Annual Rental Income $ 20,400.00 $ 20,400.00     Annual Operating Expenses Property Taxes $ 1,662.00 $ 1,662.00 HOA Fees $ 2,496.00 $ 2,496.00 Insurance $ 201.00 $ 201.00 Utilities $ - $ - Leasing & Advertising $ - $ - Property Management $ - $ - Repairs $ - $ - Maintenance $ - $ - Accounting & Legal $ - $ - Total Expenses $ 4,359.00 $ 4,359.00 Monthly Mortgage & Expenses $ 1,439.15 $ 1,114.67     Net Operating Income & Cash Flow Summary Annual Rental Income $ 20,400.00 $ 20,400.00 Less: Annual Operating Expenses $ 4,359.00 $ 4,359.00 Net Operating Income $ 16,041.00 $ 16,041.00 Less: Annual Mortgage Payment $ 12,910.78 $ 9,017.09 Net Income / Cash Flow $ 3,130.22 $ 7,023.91 Net Income / Cash Flow (Monthly) $ 260.85 $ 585.33     Less: Depreciation Expense (1/27.5 of cost) $ (7,818.18) $ (7,818.18) Taxable Net Income (Loss) $ (4,687.96) $ (794.27)     Property Metrics & Analysis CAP Rate 7.46% 7.46% Gross Rent Multiplier lower is better 10.54 10.54 Cash on Cash Return (CoC ROI) 4.85% 10.89% Cash Flow Profit Margin 15.34% 34.43% Cashflow / Assets 1.46% 3.27%

Do people identify partners, set up an LLC (which could take weeks), find a property and then create the operating agreement to determine ownership?

I recently started a self directed ira and i need to find an operating agreement to use as a templet

Not sure if they operate in Pittsburgh, but we use Guardian water and sewer.

Small operation but will work hard for you.

They're big churn & burn operations.

Commercial Value is determined by calculating the NOI (Net Operating Income), and divide by a market cap rate based upon your geographic location, and average cap rate that similar facilities in or product type have traded recently. 

@David ZhengAs with any business you are taxed on your net operating income.  

Marketing strategies, employee requirements, compliance costs/requirements, software costs, training/education, insurance requirements, etc all are not within any model that you would use one another industry model...it is it's own animal, Without explicit insider knowledge of the escrow profession, it is usually a suicide mission to start up an escrow operation.