.$100,800 Potential Gross annual income ($5,040) 5% Vacancy Factor - could be more ----------- $97,760 Effective Gross Income($26,400) Taxes, Ins, Water, Sewer($ 9,576) 10% Property Management($ 9,576) 10% Maintenance($ 1,000) Misc Fees, snow removal etc.------------$49,208 Net Operating Income$49,208 @ 8% Cap Rate = $615,100$49,208 @10% Cap Rate = $490,208$49,208 @12% Cap Rate = $410,066The numbers could slightly be skewed by higher/lower vacancy factor (5% is the lowest I would ever use).

I'm not doing any rehab to these properties besides maintenance, and as of purchase no major maintenance is needed.

What I'm speaking of is more along the lines of ongoing maintenance.

The answer might be for you to not self manage but hire a different company more well suited for what you are trying to do.Managing a property is not easy.I have a manager on site and a maintenance man for my apartment buildings and I have still have to answer questions,etc.The real answer is what do you do for a job??

Having maintenance people who can get work done cheap, yet not sacrafice quality.

I usually tell my clients to begin this way, that way they have an idea of what repairs cost, how much taxes/insurance/maintenance are, and what homeowners deal with on a daily basis.

Offer her a $500 annual renewal option fee paid to her after 6 years or something like that if she doesn't like the first remark.

This lets you leverage your capital to do more deals.The refi for most investors is to get the lower rate locked in and get some cash back to invest again.If you run out of cash or have "trapped equity" and little cash left then you have to partner with other investors to do deals.I have seen it work sometimes but generally it is a mess unless you can do multiple deals with one partner instead of partnering with one investor for this project and another one for the next.The problem with partners is down the road they get different reasons for selling or exiting the property early.I don't see the refinance bank loaning up to 100% of current value and letting you pull out the 30% and get it back.What many investors do is take on a property with maintenance and vacancy issues using hard money.Fix the problems and then create a higher value for the property.In commercial the weight is given to the income approach.So if you had 50 unit building.Units rent for 500 a month but are 50% occupied.So currently 150,000 gross income yearly.Value roughly at a 10 cap at 750,000 going in.You get for 600,000 and put 150,000 in repairs fixing problems.Total funds needed is 750,000.HML says they will fund 525,000 and you put down 225,000.You work hard and get occupancy up over 6 months to 90%.270,000 gross rents with NOI around 135,000.New value at a 10 cap for refi is 1,350,000.Refi at 75% LTV would be 1,012,500.You get 262,500 back and then your original 225,000 you put down based on the new value.I hope I am making sense.

I think people buy multifamily with not enough reserves, don't plan for capital improvements, start deferring maintenance, slowly the deferred maintenance catches up, resulting in less occupancy which leads to foreclosure.

Where are your allowances for maintenance, insurance, and taxes?