A company (or investor) that defers maintenance to hold down costs and charges lower property management and thereby offering fewer services, may see a higher ratio than 50% of the rents going to costs. 

Then allow the tenants to make payments to service your mortgage have them pay you monthly at 5.5 or 6% over 30 years and a balloon in 2, 3, or 5 years.The reason I reccommend this is that because you charge a higher interest rate than your paying you will get the spread and will make up the difference in price.

@Giannina Biala Yeah that is a typical rate, and that's only for their services not even including cost of maintenance.

Portfolio today market price:  $7,320,000Yearly Gross rent:  $495,500Yearly Operating expenses:  $105,000Yearly Average repairs/maintenance etc:  $45,000Yearly Debt Service:  $228,000Yearly net cash flow:  $117,500If I rasie a minor rent of $25/month each unit per year, $25 x 50 units x 12 months = $15,000 extra rental income per year. 

I am based out of California. 1st United services credit union offers heloc for 250k without any cost, but for 250k-500k I need to pay for closing cost and appraisal, costing me around $3500. 

Finding the good tenants will not be a problem so that is a side service I can offer an investor with the deals that I plan to provide.

Depending the answer - you may not be entitled to start taking expenses until the property is placed in service.

How about outside contract services, legal fees, permit fees etc?

@Benjamin Riehle I am getting into the real estate investment in Tucson and would love to know more of your firm’s service!

You will also need to provide proof in the ability to service the debt.