Don't forget repairs, expenses and vacancies.My advise: dont analyse this to death, go buy number one, see how you like landlording, learn from it and adjust your plan accordingly.  

Adjusting for defaults, my annualized yield is about 11%.

Use the existing rents for evaluation - - they're real and all your marketing may not yield improvements.If there's known vacancy issues, then adjust the the GSI (sum off all rents * 12 months) and subtract the loss rents from vacancies (number of units vacant * average rents * number of months their empty) . 

This passive loss allowance is phased out if your modified adjusted gross income is above $100K and disappears completely at $150K and above.

Hey there,Personally, I feel there are a few things that could be adjusted here.

In the long term, quality matters more than quantity too IMO ... even if you have great cash flow on paper but the property value and rents are going down over time when inflation adjusted, then it will likely be difficult to collect that cash flow in those type markets in the short term while you are losing purchasing power over the long haul ... that business model is more like leasing a used car than it is REI in my opinion, which is not to say that you can't make money but it is a vastly different and less passive business model. 

I just haven't quite gotten my criteria fine tuned and if I thought I saw something that I didn't like, for whatever reason wanted to know if it was a straight take-it-or-leave-it or if it was ok to have a conversation and talk about it and adjust accordingly.Brian

Owner would not provide schedule E but rather provided the following breakdown:Potential purchase price is $450KPotential Income at current rents: $75780Expense:Taxes: $6456Insurance: $3300Night Light: $348Dumpster: $2136Snow Removal: $1330Lawn Mowing: $1044I added:Vacancy Rate at 10%: $7578Repairs/Cap X at 10%: $7578Leaves us with $46010 NOII can get a 20% down/300 month loan with a 5 year adjustable rate at 3.99% at a local bank I've done commercial loans with before.  

@David Venancio  Just adjust your price from the bank.  

Because such plan allows you to pick virtually any investment you wish you can control what you want to invest in now when you are younger so you can be more aggressive and when your strategy changes in the future you can easily make the adjustment.