But this seems like a huge waste of reserves I have built up so I will have a cushion for vacancies/repairs/etc.I don't know what to do.

You'll have little vacancy once it gets rents and your net rent will be 2x to 3xs what you'd get otherwise.Cash-on-cash returns look terrific on a deal like this IF everything does as planned!

Vacancy rate-5% to 10%.

What about vacancies while highly leveraged?

You have twice the number of big ticket items; roofs, furnaces, etc)InsuranceMgmt Fee - as a %Vacancy- as a %. 8% represents 1 vacant month/unit/year

If I have a property, that I self manage, that has monthly rents of $1,000 and I have monthly expenses of $400 between my capital reserves, vacancy, repair expenses, property taxes and insurance.

Property price hasn't gone up yet.Jordan - Annual expenses above include tax, insurance, water, etc.. but here's a more detailed breakdown: Mortgage interest rate (30 yr fixed) = 4.625% Property tax = $9481.94 Management fee = none (i'm managing it myself) Insurance = $2450 Water and trash ( if you're paying for it) = $930 Snow removal = $1000 Maintenance reserve = $1200 Cap Ex reserve = $10,000 (credit I got from seller) Vacancy = 5% ($3,240) As for cap rate in my area, I'm not sure but in a quick search it seems to be 4%-8% range.

Previously rented at $950 Once paid in full it will have an NOI of $3854 Cash flow - $321 / monthARV – 50kAll NOI are after taxes, 6% vacancy and 10% repair costs added in.So for someone trying to get started what do you think?

It has 2 bedrooms/1 bath I ran the numbers through the calculator and the numbers work out to be 16% Total ROI, total cash flow $5343/yr, considering 8% vacancy and the (choke) $225/mo HOA.

I'm thinking if I can pay them a lump sum to leave I'll be ahead of the game if I don't have to have a couple of months vacancy on a more expensive renovated unit every 12 months.This area is gentrifying, think Bushwick Brooklyn.