We are negotiating an annual percent of return.

Another way to say that is you want a GRM (gross rent multiplier, purchase price / annual rent) of 1.5.

Over piad top heavy administration is the real probelm, 120 Kfor a guy who is in charge of parking and grounds maintenance at a state college.

Your net rental income after taxes insurance vacancy and maintenance could net you 20% if you manage the property yourself.

I am thinking about depreciation maintenance etc.

No matter what type of architecture, or exterior finish, many times updating with energy efficient doors, windows, new trim, and paint will do wonders.As for the maintenance of stucco, IF IT'S APPLIED CORRECTLY, and you have good gutters, etc. on the house, you shouldn't be having problems with mold.

Still, at the end of the day, if your money is gone you have nothing.I can show you my total annual return of 20% for 20 years in Portland RE.

Property: $42,000 3br/2bath 1104sqft in Wichitahttp://www.zillow.com/homedetails/1224-W-Dooley-St-Wichita-KS-67213/77366358_zpid/24% down = $10,800, 30-yr at $145/monthThe rental range in the area is $531-783/month RENT: $531/monthTAXES: $43/monthMORTGAGE: $145/monthINSURANCE: $73/monthPROPERTY MANAGEMENT: $45/month-------------------------------------------------INCOME: $225/monthI was planning on adding an additional $50/month to the mortgage payment.The rest of the income I would save for any home maintenance.

You can discredit them in court.Typically these tenants get a pro bono attorney to try to file a bogus claim.The attorney hopes your insurance pays out instead of fighting it in court.The insurance then proceeds to raise your annual rates or drops you all together.You have to make sure to your insurance company and this attorney that you will vigorously defend yourself to the end before giving them one cent.Now if they have everything documented with date,pictures and went to see the doctor that day etc. then maybe there is a case.Most of the time these tenants are looking for a free lunch.

If you need to lay out additional cash expenditures (deferred maintenance), the 1.5 calculation no longer applies as your "cash in" is higher.I would offer more in the $150 - 160,000 range and get closing costs included.