One broker I worked with said he could not use the investment property rents as personal income and another said it was no problem to use up to 75% of gross rent as income.

The gross rents are $1050/month, so clearing $600/month would be great.'

Even if you made no money in the deal, you are gaining experience, the best education out there and would likely do better on the second go round.Out of curiosity, what is the gross potential rents for all 32 units currently (not including rent increases)?

Thank you for all your reply , fortunately my buyer is new and has his own money and this property is his first investment .He saved the cost of hard money which is about 16 K as per Jon Holdman. he will pay 15 k for commission and closing costs .So he is closing on the house this week and he will be making 30 k on gross invested cash 195 k in 90 days time frame. he is happy and he might be able to sell it for even higher price 225k-250kI am sure 70% formula less repairs is SAVE zone for rehabbers due to the following 1) over spending the rehab project and taking longer time to finish it. 2) overestimating the selling price. 3) hard money cost: 4 point and 14-18% interest. 3) underestimating the holding cost.

Due to previous gross findings I'm scared of left behind refrigerators.

It's hard to hit this gross rent multiplier in CA unless you go pretty far inland to areas with lots of empty, buildable land.

Rule of thumb is usually 50% of gross for repairs, vacancy, management, etc.

Yours doesn't quite fit that rule, as it would need to gross $1,000 / month in rent to fit the 2% rule.I don't know about your area, but in my area opportunities for a SFR to meet the 2% rule are next to none.

That's $120K gross so the properties are losing $70K/year or 58% to expenses.

It's 5% gross potential rent, but start deducting the frais de service, insurance etc. and you're left with less than 3%.