I am looking to pick up some apartment buildings in Newark, NJ and would like to immediately re-position each building by managing the expense side. 

Last but not least, generally speaking HML is expensive.

Maybe offer some help with moving expenses or guarantee a full refund deposit if they're out by a certain date.

It's not that expensive and it helps maintain the property and eliminates complaints from my tenants 

Assuming a 6 month, 100% loan for the purchase price at 11% per year plus 2 points, as well as 15% interest for the full rehab, here is an estimated P&L:Don't mislead yourself by focusing on the spread between the purchase price and ARV, as many new to the business seem to do, ignoring all expenses.

Late January, we get it rented out again.Between the process of eviction and the slowdown due to the holidays, it seems entirely possible that we'd miss out on 3-4 months rent by going with scenario 2, not to mention the expense and hassle of the eviction itself. 

Total cash flow after expenses is $9200/yr.Would YOU:A.

Every now and then a 1%+ property comes along, but it's extremely rare.And the reason for that is because the whole 1% Test, 2% Test / Score / Rule or whatever you want to call it is designed as a metric for the rest of the county where the median home value is half of what it is in California.

Some things I would advise on would be to saving for expenses like CapEx and Vacancy. 

Short term (1-2 years): generate $2,000 cash flow after expenses per month (child care costs)2.