The return numbers on your rental analysis look very appealing because they're based on what is likely a false assumption.

After PITI, there is about 15.5k/yr leftoverOwner paid utilities = 2.5k/yrUsing these assumptions:12% of rent for a PM = 5.5k8% of rent for vacancy = 3.5kNot including the tax benefits, I'm left with < 4k/yr for profit, repairs, capex, reserves, etc., which is >$100/unit per month.The charged rents seem reasonable, and may be $25-50/mo below what the market allows.The building and units seemed well maintained.

If your looking for a retirement supplement I'm going to make a broad assumption that your not looking to manage properties on a day to day basis.

However, I make sure my ad provides the specifics such as "Pets with owner approval; no puppies please, no aggressive breeds".This, of course, assumes that applicants READ the posting; an assumption I'm finding is more hopeful than realistic with some of the contacts I'm getting.BTW, after several years of having to fix up pet damage/fleas we finally started including a pet deposit of $250 but are generous (I think) in returning this deposit at the end of the lease if the pets do not do damage. 

This deal went from too good to be true to not very  good with a few changes in assumptions.  

Stay disciplined when you do purchase, ie dont change your numbers to make a deal look ok, and prepare for long term needs like financing.Yes, I think we are closer to a top than a bottom, so my wife and I personally will be extra conservative on our assumptions about properties we hope to buy and hold.  

loan assumption?

I apologize for making that assumption. 

I would assume if the other comps are not doing it you will not get a higher price and based on that assumption is the cost worth the loss in potential profitability?

hi Yvette @Yvette Chung- Did quick math in my spreadsheet, based on below assumptions, looks like you would be cash flow positive.