Also, I have decided to enter the professional world in the insurance industry.

We don't anticipate having any emergencies with our rental properties that aren't covered by insurance and would cost more than $2500, but if we did, we'd chip in from our personal funds and cover it.

@Shannon McEwan I think that your requirements are fair and line up with the typical standards for renters.

The other thing I've found in my experience is that owner occupied buyers (especially first time buyers) will run out every single last day of the standard 60 day closing and aren't going to close before then even if everybody is ready just because they don't have to. 

As a person who was literally about to press GO on a rollover from my standard stock market index-based 401k (with my previous employer) to a self-directed IRA so I can do more REI, I feel sick at my stomach.

to be some upside that I am missing in my valuations:Purchase price:  495,000Units:                      16Rental Income:      8,400/moDown:                    20%Down:                    100,000Closing:                      6,400Repairs:                    16,000 (assume 1,000 per unit)TOTAL INVEST:     122,400Costs:  Debt:                  2,800.00 (6%)   Taxes:                   690.00  Insurance:            200.00  Sewer:                   800.00  Heat:                  1,200.00  Yard:                       40.00  Garbage:              300.00  Cap Exp(3%)        252.00 (Lower than I normally go)  Repairs (5%)        420.00 (300.00 per yr/unit)  Mngmnt (10%)    840.00  Vacancy(7%)        588.00  Screening              40.00 (tenant screening)TOTAL COST:     7,600.00 (rounded)Monthly CF:          800.00 (yikes...…...50.00 per unit!!)

You may have trouble getting insurance if the property has knob and tube.Plumbing is also important.

I'm sure some people with some real experience will chime in on this but as another newbie just diving into my REI career this seems to be pretty standard.

Management is impossible to select until you have picked and vetted a firm- while it is an operating expense, you're likely going to pay from GOI...so assume closer to 12% NOIYour vacancy is pretty low, but it's all relative here...I would at least set aside 1-2 months gross rent for an unexpected turnoverIf you can insure a 4-unit property for $150/mo. you have an awesome agentAssuming 50% of your income will go to OpEX is pointless.

Does anyone usually verify that the general contractor they are hiring are licensed and insured?