As I was living out of state during the interaction (in MI, where I am now), most of my conversations with her were via e-mail.  

Flipping is pretty interactive and waiting around for processing and paying fees for every check issuance will not work that well.  

Being able to achieve your long term goal is well within reach if you utilize all the resources available to you.

This way, you can review the lease up fee, management fee, how they handle utilities and other payments as well as vendors.

I'm interested in investing in SFR's and small 2-4 unit multi-family properties in the Inland Empire, looking to utilize the BRRRR strategy (and possibly the occasional flip).

Assumption 1:  If the tenants pay their own utilities the expense ratio should be around 30% (in a well run park)Assumption 2:  if the owner pays the utilities the expense ratio should be around 40% (in a well run park)Assumption 3:  Do math for a 10 Cap-it works for any Cap rate you choose including  positive or negative*************************************************************************************************************************Net operating income=gross income - expenses Using the expense ration of 30%  => Net Operating Income*(1-expense ratio)=> NOI*(1-.3)Therefore:NOI/yr=(#lot)*(rent per lot per month)*(12 month per year)*(1-expense ratio)Cap Rate=NOI/Purchase pricedo some 8th grade algebra followed by some 6th grade math (dividing with a decimal)Purchase price=NOI/Cap rateTherefore:Purchase price{tenants pay utility}={#lots*Monthly Rent*12*(1-.3)}/0.1 =>84* lots * rentPurchase Price {owner pays utilities}={#lots*monthy rent*12*(1-.4)}/0.1 =>72*lots*rentThere are the 72/84 numbers derivedIts not rocket surgery.  

- it's always good to see another Hoosier utilizing this great site!

As a conservative estimate including taxes, insurance, 5% vacancy, utilities, and repairs we would have been netting over $800/month.  

Thanks all and I can't wait to interact with you all along my journey!

The issue with ONLY using this method as a way to invest is that it fails to take into consideration: 1) vacancies and bad debt (i.e. uncollected rent); and 2) operating expenses (including: taxes, insurance, repairs & maintenance, capital reserves and utilities, property management, super(?)).