I've been using a total of 10% for both (as well as 10% each for vacancy and prop. management) and I'm already having a hard time getting offers accepted at numbers that will cash flow on paper.

Hi Greg,Are you accounting for vacancy and maintenance in your return calculations?

A few nights in a hotel, or a week on the lake, is cheaper than a month of two of vacancy.

Details:Mobile Home ParkYear Built - 1945Lot Size - 105,000SFAsking Price - $825K60 SpacesComes with Onsite Laundry (6 Washers & Dryer as extra income)Yearly Tax Bill: $4,300 (Have to double check, seems low)Income: Each space rents for $350/mo (Includes Water, Trash, Sewer)40% vacancy (most of which are long term tenants) I would consider this a D-Class area and needs rehab work, don't know the details yet.

That's not accounting for any debt carry, management fees, maintenance, vacancy, liability, litigation, etc, etc....A negative cash flow multi family rental property is straight up indentured servitude.

Number details below:Price: $82,500ARV: $115 - 120,000Taxes: $150Insurance: $55Assumptions are 8% vacancy, 8% repairs, and 12% management fee.

What is the average vacancy rate in your area?

You will have repairs, you'll have months with a vacancy, things like that.

The true net of that is probably more like 50k after vacancy, repairs, taxes and insurance.

Duplex 2bd 1b upstairs 1bd 1 b down 1000 month total rent 53,900 seller pays closing20% downMonthly................ vacancy 80 capex 100 insurance 35 P&I 272.80 repairs 50 water 35 PM 100 tax 75 New roof in 2011 Separate utilities new water heaters and furnace 2011 aluminum siding no gargage cash flow 252.20 11.69 cap rate opinions??