@Julie Belton, the cap ex, repairs and insurance expenses seem too low to me.

If he pulls the old unit out a day ahead we provide window units in the interim (usually in the bedroom) until the job is done.I've never had a tenant complain about this but if they did I'd probably tell them stuff happens and that's life.

Right after you close get an insurance policy that protects you if there is a loss. 

You can charge the person that is buying the option agreement th 3-5% option consideration fee, but the legal fees and other costs that are there to insure your protection, is out of your pocket, since it is your option to use those services.

In Colorado whenever I look at triplexes the insurance is double of a duplex.

Occasionally they break and you can patch them, but at the end of the day there is an average life expectancy of a system.Structures on the other hand.....they could potentially last forever if well maintained or if you use the right products.  

Well the insurance will not cover the SFH anymore because it is not owner occupied.  

In Canada all you need is adequate insurance coverage anything more is just for show, unnecessary and costly.Even in the US for small investors it is a misconception that it actually adds any value or protection.

What is the monthly payment to include taxes and insurance?

So I feel 1% allows me to account for a little adjustment)Vacancy Rate = 11%Closing Costs = 2%Selling Costs = 6%Cleaning and Maintenance 0.8%Property Management = 11%Repairs = 8%CapEx = 12%Taxes = 1.2% (I tend to adjust this one frequently, but this is my default)Insurance = 0.5%Other Expenses = 0.1% (my flex money as a "just in case")Initial Renovation Costs = $500