As far as money to be made, assuming my numbers don't change (market rent drops or is off) I should cash flow after all expenses (vacancy, capex, ins, etc. prop manage - even tho' I plan to manage myself, I built in PM for future) just under $400/mo, removing PM adds another $200 or so.

If they were everyone would be rich.In terms of unit mix, the more units in a building the greater protection against vacancy loss, however the more units the higher the priceIf you do not have 20% to put down odds are that you will have to use FHA financing which is only available for owner occupants.Where I live I could not get a good cashflowing property in an area I would like to live, so I buy in more urban areas.

Besides the normal -- finding great tenants with less vacancy, payments on time, answering repair calls promptly, etc.

My first year with my 3 unit in Newark cost me close to 10k in evictions, vacancies, and damages.

Assuming the typical SFR is 40-60k appraisal value and rents for 650-800; you could control SFRs all leveraged at 80/20 with 20 year amortization and would be netting 100-200 per unit (after CapEx, Vacancy, insurance, and repairs).

I have been presented with 2 properties with 576 units, with the price To Be Determined by Market; Cash to Assumption of Existing Debt , the properties consist of;Total annual income of both properties; 4,088,316.00Total annual expenses of both properties; 2,344,761.00Total NOI for both properties; 1,743,555.00The vacancy is about 3% for both.One has an unpaid balance of 8,7205,06.00 with 4.13% interest rate and a monthly payment of 43,645.00the other has a balance of 7,229,981.00 with a 3.87% interest rate and a monthly payment of 35,011.00Is this a good deal or should I pass on it?

The damages, evictions, vacancies, and other costs associated with a bad tenant will almost always far outweigh any short term gain.Best of luck!

Even IF you could fix it all for $15k plus the PP of $8k for a total of $23k, you'll be lucky to get $550 rent [on occasion between vacancies and vandal visits].Unless you have experience in this type of home I would make like Forrest Gump... and run away from this money pit.I tried this price range of homes when I first went full time a few years back and hated it.

Hi All, My partner and I have been going back and forth and how to invest some funds.We could potentially free up  ~450k to spend on real estate and at that time could have three traditional mortgages left.We need on average 9.5% return to hit our goal with this money including property management and some realistic (to fairly pessimistic) numbers for maintenance, insurance, vacancy etc.The problem we are running into is the places we typically buy are pretty cheap SFH.

The property is still listed (red flag) and I am revisiting this opportunity.Asking Price: $260,000Apartments: 9 Units (Fully rented, average rent is approximately $370/mo per unit ... total $3330)Restaurant Space: 1566 Sq Ft (Currently rented for $1000/mo)Retail Space: 756 Sq Ft (Currently rented for $500/mo)Total Gross Revenue: $4830/mo ... annual $57,960Expenses:Taxes - $6098 (2.345% of Purchase Price)Insurance - $1800 (Estimation)Maintenance/Repairs (5% of PP) - $13000Property Management (10%) - $5796Vacancy (10%) - $6166 (10% + 1st month rent for vacancy)Miscellaneous (Garbage, Pest, Snow Removal) - $1200Water - $1500Mortgage (4.00%, 20-Yr Am, 20% DP) - $15120Total Expense - $50,680Free Cash Flow/Mo - $606 ($7274 annual) ...$67 per door.Debt Coverage - 1.481 or 2% Rule - 1.86%50% Rule - 61.35% (Allocation to repairs is heavily conservative.)ROI - 8.62%CAC - 13.99%Vacancy for the apartments are near 0%.