Looking at the numbers, when you allow 10% for vacancy you have an effective gross revenue of $53,730.00.

I'm thinking of using 10% vacancy, 12% repair and maintenance (to include repairs, lawn care, snow), 10% CapEx, 10% property management.

Also, you'll have to plan for repair, maintenance, and vacancy.

Then account for a hefty vacancy and repair charge by discounting your estimated rents by x percent.

It cash-flows $800/m before vacancy and maintenance, currently occupied with good tenants--but I am moving on to bigger deals and this doesn't fit my portfolio any longer.I'll assure the tenants that leases will be upheld; I'm also considering paying them $25 for each showing where they keep the place very clean and paying $500 if I sell it.

If expenses (and capital and vacancy) are 50% rather than your more optimistic 45% then your cash flow falls from $501.45 to $126.45 and your cash on cash return falls from 8% to 2%.

I also don't see any expenses allocated for vacancy, management or maintenance.

Since I don't mind being hands on, I find out of state very frustrating as I can't control my costs and vacancies nearly as well as I can locally.

@J Martin I like to see what the breakeven vacancy rate is.We just bought a 14 plex.

If you pool all my properties, I'm 80% leveraged, however I can break even with a 40% vacancy rate.