(I have only done around 3 dozen deals through this account.

Just off the top of my head, add in furnishings, local accommodation taxes (total up to 12% in MB), owner paid electric, and capital expensed items (some of these may be via special assessment.)

Especially for investors, you should always present a "best case," "worst case," and "most likely case" scenario, so they can properly assess risk. 

@Steven Blanton   agree with Randy... this is totally reasonable ... your being extremely short sighted... not sure why we have this I want it all mentality NOW. after 5 deals your partners.. ever heard of apprenticeship... and working your way up.you pass on this and Earn nothing. and if you could get a HML you would do it.. so here you sit make a post like this and look for others to jump on your band wagon.. someone =with no money and is just going to find the deal and do the work is DIME a dozen franklytake the deal get in the game quit worrying about it.  

I understand cap rates to be used for commercial property evaluation only. 1-4 units is still considered SFH by all legal definitions and tax implications. 5+ units makes it commercial which triggers a market that uses cap rate for assessment.

In the mean time, do a complete assessment of the repair costs to make-ready for the next tenant.

You can look into a smoke outside only policy, but it is hard to make a leopard change their spots (if they have been smoking inside for years, good luck changing the behavior)...If you want to go no smoking at all,  you could just give notice with month to month or not renew when the lease ends, but the inside smokers can create quite a lot of work on the turnovers so you have all that work now (when closing taps your cash) and an early vacancy plus losing a good payer...Maybe get inside and assess the unit and behavior some and consider if it workable another year or more (who knows they could stay years) or if you need too make a change.

So at some point you will receive a second supplemental bill for the almost $900,000 difference in assessed value and it will be for the whole 12 months. 

I think Sean Terry said this was close to the best parameters for getting a good response.City of my choiceTotal Assessed Value 0 to $100,000Property TypeResidential: SFRLength of Residence10+ Years(Household) Age65+ YearsADDRESS-COMPLETENESS Mailing and Property address CompleteCORPORATE-OWNED ExcludeI got 327 from the above criteria for $57.  

So if I had to guess, I'd put there real debt on the property at around $850k, and that assumes the mortgage company has been paying the property taxes (you can check using the link to the county under tax and assessment in PR).Of course, this could be completely off - they might have paid the 2nd off, they might have paid the 1st down before getting in trouble, etc.