.-6-units fully rented ( 2-1bdr/1ba, 4-2bdr/1ba)-Sale Price to end buyer = $420K-Yearly rent = $72K-Yearly expenses = $21K (includes taxes, utilities, insurance, garbage, exterior maintenance)-NOI = $51K/yr-CAP Rate (NOI/Price) = 12.14%Please let me know what you think!  

I am using the following numbers:Vacancies - low in my area so I'm using 8%Repairs  - 5% of rental incomeCapital Expenditures - 5% of rental income + 1% for every decade over 20 yrs property age (i.e. 7% for a 40 year old house)Management - 12%  (expecting 10% + 1 mo per new tenant)So this adds up to at least 30% of my income.  

Some may claim very low rates, etc but when the time comes they don't fund the deal.

However, because it's a competitive, animal-related, "fun" job, the pay is pretty low.  

I offered $50k cash for all the properties, contingent upon bank statements, lease agreements, maintenance history.

I was concerned about the potential electric bill because winters in Wisconsin can be pretty brutal.In reality I kept the temperature at a comfortable level and never had an electric bill that went higher than $90 to low $100s.i loved it.

The association holds the quitclaim deed so I believe my monthly rent is going to the owed maintenance fees.

Crime rates are very low, but the properties in the immediate vicinity are blighted.

Cash buyers generally push prices down as low as possible with the promise of closing quickly.

Also, even if the previous owner only owed 60k, you have to take into consideration the cost of foreclosing and the lost income if they hadn't been paying for months or years, not to mention any other costs of satisfying tax liens or maintenance issues that need to be resolved before sale.So, speaking as someone who has bought only 3 foreclosed properties:  You make an offer that works for you, and depending on how anxious they are to sell it, and how much interest they've had, they will accept or reject.