A company (or investor) that defers maintenance to hold down costs and charges lower property management and thereby offering fewer services, may see a higher ratio than 50% of the rents going to costs. 

If it is obvious then a good appraiser should see it and adjust comps accordingly. you could also use this as a reason to lower the sale price, but be careful, if you try to renegotiate the seller has the right to walk away at that point also.

Probably closer to 60-65k These houses are in the lower end.

However, when you add PM and CapEx savings to the Operating expenses it drops your NOI tremendously and then when you multiply it by the Cap Rate you get a much lower valuation of the property than the listing price. 

Those in the lower price points are production oriented they do the same cut and paste from previous projects on various elements. 

That's partially because our Airbnb prices are a little lower on average -- because they are integrated with our pricing software Wheelhouse, we time discount prices. 

As such, I agree that the maintenance costs could be much lower.

Here's what it looks like:Purchase price = $300kRental income = 4 x 1bd/1ba @ $500 , 2 x 2bd/1ba @ $650 = $3300, seller thinks  1bd's can go up to $700 and market research supports that Taxes = $200/monthEstimated expenses = 1300/month (10% each for vacancy, CAPEX, and repairs and $200/month for insurance)NOI = $23k at lower rents, $33k at higher rentsCash flow = $500 at lower rents, $1300 at high rentsThe property is in a C neighborhood that is gentrifying.

In 2017 when you renew the lease do you have to lower it to $1142? 

Maybe I’m not understanding things correctly, but wouldn’t the risk of a major fire coming through again be lower since much of the old kindling has now been burned?