Houses are typically 10%, a building of this size could cost only 5-8% of the monthly income for property managementYou can force appreciation to boost the value of the property, resulting in: Instant equity that you can borrow against to buy other propertiesThe opportunity to sell in 3-7 years for a significant profitHigher valued property means higher personal net worth – a higher personal net worth means you are able to buy higher priced propertiesDisadvantages 15 tenants to deal with15 toilets, sinks, etc. to deal withHowever, with a good property manager at the helm, you wouldn’t have to deal with the two items above, my property manager wouldMore activity because more tenants (again see the third item above)Requires stricter, more focused asset management skills and heavy oversight of your property managerPLEASE NOTE: I made the examples simple to illustrate a point and are not real accurate on the specific costs involved.

The above examples are just for illustrative purposes, you'll need to find your own market derived rental , vacancy and cap rates.Good Luck!

Greg, could you illustrate the labor part...I think it's helpful for people to figure things out in their head.

Grumble, grumble, grumble.This thread, once again, illustrates how much the reality of making money in SFR is often divorced from theories about it on this website.The OP (who identifies himself as a realtor, appraiser, and investor) asks in the title, "What does a perfect SFR rental look like?"

Section 61 lists the more common items of gross income for purposes of illustration.

@Todd BlytonDid your policy illustration show 1st year cash value at ~85-90% of the premium?

If the structure appears to be closer than 5 feet to a side or rear property line, you may want to hire a local surveyor to conduct a boundary survey, which will produce a site plan illustrating the metes and bounds, or legal property lines.

It's a very small risk but very clearly illustrates the problems in DYI a 1031. 

Lots of out-of-market wannabe investors come on BP all the time, and this thread is a great illustration of what it is really like to be an out-of-market investor.

Unlike Baby Boomers who have 1 or 2 jobs their entire career, Millennials have 1 to 2 jobs every 2 years (just anecdotal or an exaggeration just to illustrate the point).So renting is more amenable to them as a lifestyle choice so they can move or relocate where there are higher paying jobs.3.