Every time a single female wants to rent it and I tell them " heres the shed its where you put YOUR lawn mower "   They reply that they dont want to cut the lawn .  

Equity produces artificially high cash flow numbers that must be at least partially deducted.

@Maria MarreroYou're missing a lot in the analysis, artificially making the numbers look good.You used a heloc, those payments should be in consideration.You include CapEx, taxes, insurance, but what about repair reserves, utilities, property mgmt?

Then there is lawn care, which you would most likely have to take care of with this tenant class.I also doubt that the seller would entertain anything starting with a 2 in our area. 

I underwrite properties like thisGross rental income-all expenses (utilities, lawn care, insurance etc)-10% vacancy -10% cap ex-10% management fee———————————-= NOISeems that the seller didn’t value properly.

Hire a landscaper to go over there to mow the lawn, ask the landscaper to take before and after pictures of the work.

Yearly Expenses- Taxes $4,540.00 Insurance $1,278.00 Sewer-water $1,500.00 Rubbish $1,200.00Gas-Electric $3,475.00 Lawn $ 840.00 Snow $ 425.00 misc. $ 200.00After running the numbers cash flow is $-583.00 (including 10% vacancy, 10% property management, 10% Cap Ex, 5% repairs and debt service) Total monthly operating cost $13,522, mortgage $1,455.

Snow and lawn is often done by tenants.

Here are the issues:- Dogs left outside, barking 24/7; police have been called at least 20 times; 4 neighbors getting ready to file a lawsuit- Started paying rent late, now 2 months in a row; never emailed or called us to inform of late payment- Not maintaining yards front or back; lawns are dead, weeds everywhere, trees overgrown- Parking "toys" outside and on the street (boats, SUVs, trucks, cars, golf carts, etc)- Leaving furniture and garbage everywhere outside (on the front patio, side yard, front yard -- everywhere!)

The lawn care and snow removal are provided by one of the tenants who gets a discounted rent.