Here's the numbers.Rent: $549 per month per unit (their numbers say $585 I think they include coin laundry) - $26,352 annualExpenses: $11,200 total annual (I factored 60% off gross because landlord pays water/trash)Taxes - $2568 annuallyNO I - $15,152List Price: $145,000 (per four plex)Cap Rate: 10.4Located in a desirable neighborhood/great school district surrounded by newer single family houses/condos.I have the capacity to buy #3 or maybe all 4 of the four plexes depending on deal I can get (15-20 % down, 4-5% interest rate on conventional 30 yr.

You can look at the annual rent revenue and divide it by the gross potential rent, to get an idea of what kind of economic occupancy the seller has attained for the past few years.

And by your description the house is pretty gross , and finding someone to clean it out will probably cost more than you would give him . 

California charges a minimum tax of $800 a year per LLC, and more if you have gross receipts in excess of $250k.

It's a sort of a gamble still because the economy is mostly bolstered by State employees, and prices are relatively high still for decent properties.

I am sure you have your own evaluation formulas but here is a brief example of how you may price this out:44X400 per month ($17,600) Gross income monthlyX 6 mos ($105,600)Divide by cap rate 10,11,or12 (CAP Determined by Grad of area C/ C- /D)10% Cap = $1,056,000-Repair Expense $250,000 = $806,000 divide by 44 units= $18,318.00 (price per door) This would be a good buy:)This is based on C grade neighborhood

B and C’s modified adjusted gross income is $300,000 and exceeds the threshold amount of $250,000 by $50,000.

Or are they lying to me about this fee being subtracted from all section 8 landlord's, or are they suppose to set the FMR as gross $200 higher.

I don't have the numbers in front of me but about $425K total cost, $150K invested, and $5k/mo in gross rents.

In reality your Gross rents are 2,615 until you rent that unit out.