@Shelly Shanks For buy and hold the formula is relatively simpleAnnually:(Monthly rent x 12)- property taxes - insurance -property management fees - HOA fees if applicable - budgeted maintenance and repairs- expected vacancy - loan payments.This will give you your annual cash flow. 

When the homeowner starts falling behind on his mortgage repayments, the bank charge them hefty penalties which over time add up and can erase any equity the owner has in the house.Unless you talk to the owner or the bank who holds the note, I don't think you can precisely know how they owner owes when they are  not current on their mortgage.

The units are not metered separately, and all are charged utilities via an equal split averaged out over the past year's usage with a 50% markup.

Appraisal from 6 years ago means little to nothing today.The area could have changed greatly since then and certainly construction materials,labor costs, along with legal fees charged.

All brokers charge fees, anywhere from $175 on up per transaction.

Someone who responds to an ad on the Internet is an unknown in terms of their character, even though they fill out an application and undergo a background check of some sort.In the past, I would get a discount on a month's rent if I renewed my lease by a certain date.

If I do get a ticket, how do I handle that regarding charging the tenants? 

You always have the option of withdrawing the eviction application if you can get them out sooner.

Essentially what that means, is if you lied on the loan application and at a later date the bank figures that out, you are on the hook.Having said that, you will have a hard time getting a non-recourse on a standard residential property (1-4 unit).

You will be charged points and other expenses.