Because we are very close to a traffic light and a major highway people have to stop because they have to stop. 

Same thing for landscaping etc.

However, we (my parents and I are the owners) noticed that they are using the HVAC in excess and using what appears to be unnecessary electric (TVs and lights remain on even when not in use and air conditioner is running constantly).

Purchased a 3-2 single-family home with a permitted 2-1 ADU in Van Nuys, CA with conventional financing (20%) and added about $30k in repairs/upgrades/landscaping.

I think it's a great strategy for experienced well capitalized investors, but many new investors with limited capital should tread lightly.

Walls Remove/treat mildew (per surface) $15.00 Repair hole in wall $55.00 Repaint (per wall/ceiling) $40.00 Doors Replace door (interior) $165.00 Replace door (exterior) $485.00 Replace weather stripping $25.00 Electrical Replace light bulb $3.00 Replace light fixture globe $20.00 Replace light fixture $65.00 Replace electrical outlet/switch $15.00 Replace electrical cover plate $2.00 Actual charges may vary based on condition, vendor and/or cost of materials.

I am looking at an occupied multifamily in "downtown" Urbana that after some light work should hit the 2% rule.

Needs to be gutted, needs new roof, new hvac, new windows, new drywall, fix water damage throughout, rebuild an addition, add a garage, add a 2nd bathroom, new flooring, new kitchen, new appliances, paint, landscaping, redo driveway, redo layout (used to be a triplex but is now sfh), remediate sinkhole, replace asbestos shingles with siding, upgrade electric from fuse box, replace cast iron pipes throughout, put in a pool. 

My entry level clients having success are using search tools and lots of boots on the ground to find those smallish  mom and pops that dot the landscape nationwide but are little cash cows with plenty of room to grow as progress moves toward and through them. 

Cashflow is just what keeps the lights on, while you get there.Cost per unit seems very cheap to me, which makes me question the neighborhood and the tenants.