With a number of hotels, bed and breakfasts, house rentals, restaurants and even a yoga retreat, Sansara Resort, ex-pats have begun laying down a solid infrastructure from which to build a solid, thriving community.Surfing in Cambutal is one of the biggest draws to the area.

@Brandon Turner often talks about saving $100 per month or so for CAP EX, but we might not need this for years (hopefully).

Ex.

You haven't accounted for op expenses, cap ex or vacancy & collection losses yet.Your agent doesn't sound like an investor. 

And since, you asked how others have handled similar situations, here’s how I’ve handled it in the past:https://www.biggerpockets.com/forums/52/topics/252435-taking-a-tenant-to-small-claims-court-part-1https://www.biggerpockets.com/forums/52/topics/295592-finally-collected-on-a-small-claims-judgment-against-an-ex-tenant

33 Unit - Asking $4350000 - ( I believe I can offer $4120000)Building is %100 occupied Current Rental Income -   $400380Total Additional income  $20698ExpensesReal Estate Taxes $66,695Insurance $8,407Trash $3,534 Electric $2,375 Alarm Monitoring $666 Gas $18,749 Pest Control $1,135Water/Sewer $24,051 Landscape/Snow Removal/Cleaning $12,168Management $34,439  Repairs/Maintenance $16,000Cap EX $20019                        TOTAL EXPENSES $208235NET OPERATING INCOME: $212843Dept service  $195600There is a big rental upsideCurrently the average rent is 1042 per unitComps tell me that if I fix up units @$8000 per unit - I will be able to get $1300 average on a unit.Once all units are done over the building should be able to fetch $6m after 36-48 months 

I do run into older investors usually 70 and above who own big size portfolios and that was there business for decades running rentals. and by then they are all free and clear.. cash flow very large with no debt.. and monster equity of course even if the props never went up.as long as cap ex and turn over did not kill them along the way.. its the back bone of being a landlord..  

In the end, if these are expected, and treated as numbers (say 12% for vacancy and 20% for repairs and cap ex), and the property still cash flows well, am I crazy? 

EX: 100k sale price can get you around $1250-$1500 in rents, with 20k down if you use commercial financing. 

That should have you sniffing the wind for any hints of cap ex or deferred maintenance that could turn break even into bad loss.