That rule of thumb says that 50% of the gross scheduled market rents go to vacancy, expenses and capital.

Gross income currently under market and property is renting $500 per unit.

The treasurer of the corporation presented the treasurers report, which stated that the previous taxable year had:a) a gross receipts total of: _________________b) a gross profit total of: _________________c) a net profit total of: _________________Upon motion duly made, seconded and unanimously carried, it was resolved that the secretary would attach a copy of the treasurers report to the corporate minutes book.9.

So for you its about 40k....I look for monthly total gross income to be 3 times the monthly rent.

I set aside 15% for repair & maintenance and 10% for vacancy from the gross rents.

not too shabby from a cash flow perspective, but your gross profit (excluding insurance, taxes, HOA, repairs, etc.. aka non-financing costs) would reduce this to less than an 8.6% CoC return.

So you can get $9,5k montly gross?

If possible I would like to hear some feedback on the properties below:Property 1: Listing price $149,000 2 Commercial Units & 1 ResidentialIncome: $17,499 Factored in a Vacancy/Loss Rate = 5% or $921Expenses: Taxes = 2200 Insurance = 700 Trash = 400 Water/Sewer = 1,000 Maint = 2,000 (high estimate) Total Expenses: $6300 Expenses of % of Gross Income =39.20%NOI = $11,199 Mortgage = $7,854 Total Cash Flow = $3,345 Cash ROI =7.37%Property 2: Listing price $149,000 2 Commercial Units & 1 ResidentialIncome: $17,100 Factored in a Vacancy/Loss Rate = 5% or $900Expenses: Taxes = 2600 Insurance = 800 Trash = 400 Water/Sewer = 800 Maint = 2,000 (high estimate) Oil = $3,900 Electric =$1,800 Total Expenses: $12,300 Expenses of % of Gross Income =73.33%NOI = $4800 Mortgage = $7,854 Total Cash flow = (3,053)Property 2 obviously does not look good on paper because of the expenses due to oil and electric.She has them listed to buy both for $289,000.

One I did cleaning, painting and minor repair and resold for about $23K gross spread.

I would say focus on hitting the 50% rule (expenses equal to 50% gross rents after vacancy assumption).