Duplex in Lakewood OhioAsking Price = 152K , Potential Offer = 152K , Gross Monthly Income = 1750Total Expenses w/o Mortgage = 945 (taxes, capex = 5%, property mgt = 10%, water/sewer = 100, repairs = 5%, vacancy = 5% , snow/lawn = $50)Rehab budget = $5000 (for flooring and the kitchen, the other unit has been fully renovated and rent for 900 bucks)Summary:Total Monthly Cash Flow with property mgt = 106Total Monthly Cash Flow without property mgt = 276Total Cash Invested= $12,351.00Yearly Cash on Cash Return with property mgt = 10% Yearly Cash on Cash Return without property mgt = 27%(This is my first deal so I'll be house-hacking, DEAL or NO DEAL)

If you look at it 20 years in the future, when you'll still have an interest rate locked in at a freakishly (and artificially) low rate, you'll be fist-pumping excited! 

I get more than that with my savings account.Personally here are the criteria I useRepairs 10% (I will pull a few percentage points off if it has been or will be a fresh renovation OR if it is a fairly new build)Vacancy 8% (Agree with Tim that this accounts for 1 vacant month every year due to turnover)CapEx 5% (same as repairs, will pull a couple points off if property is in nice condition)Property Management 10%Other Fees $100/mo (this is to cover lawn care, snow removal, and just put a conservative buffer into my analysis)Target:Cash Flow $150/mo/unitCoCR 12%+I believe theses numbers to be the most conservative side and that is why I start each analysis here.

Remember, if you nearly double the value of the property, you can expect your taxes to double as well.I'm more comfortable with MFR Vacancy of 8%, but this is super local.What about lawn care, snow removal, pest control, and admin/professional fees? 

Lawn care?

I know that sounds ambiguous, but that's what I'd like to get some perspective on - YOUR perspective.When I factor in 5% vacancy, 10% maintenance, 175-200 cap ex, 11% property management, 75 lawn service, 150-250 for utilities (water, sewer, garbage seem to be the norm here), plus the fact that I'm looking to get in with a 5% down payment...well, most of the calculations end up in the negative. 

Tenant will be paying any landscaping/lawn care, and utilities. 

Expenses like lawn care/snow removal you can pass on much easier to the tenants.

Furthermore the lawn was 7-8 inches high with no plan to have it cut for another 2 weeks!

Regulatory burdens are likely to go up, and I think asset prices will remain artificially high due to loss aversion.