Do we accept putting additional cash into our first deal or do we keep our eyes open for another deal.Original Offer:Price: 153k ($31k into the deal)Anticipated rent: $2,000k/monthOperating expenses: $9.4k / year (includes management, cap ex, vacancy, taxes, insurance, etc.)Cashflow: $4.2k / yearCash on Cash return: 13.68%The appraisal came in at 146k and they raised some very valid points on why the property was not worth 153.  

You can only deduct the part of the PMI paid that applies to that tax year.https://www.irs.gov/faqs/sale-or-trade-of-business-depreciation-rentals/rental-expenses/rental-expenses-1

My strategy is to exit in 3 years.Based on my calculations, it will generate 3.7% cash-on-cash return in the first year (with an aggressive expense estimates) - I am betting on the appreciation value than cash flow.

I live in Southern California Los Angeles area, have a W-2 job in Irvine and no expenses or debts, with an excellent credit score. 

I will do anything reasonable to avoid the expense of turning a tenant. 

Evictions are expensive, encourage them to just move out if it doesn't get better.

Living in NY as well, everything is so damn expensive here and I am so weary of out of state because of being scammed in the past.  

All expenses should have been capitalized in 2016 and taken against the income in 2017.

Philadelphia, PAList price: $1.035MUnits: 23BUILDING SIZE: 16,236 SFGross Income $188,760Operating Expenses $100,614Net Operating Income $88,146Pre-Tax Cash Flow $33,515Rents vary but the average is $668 and there is value addBy my figuring I'm looking at: Monthly Income: $15,718.00 Monthly Expenses: $13,487.39 Monthly Cashflow: $2,230.61 Pro Forma Cap Rate: 7.14% Cash on Cash ROI: 2.27% Purchase Cap Rate: 8.73%Do you all think its worthy of continuing to pursue further?

@Andrew Michaud I would focus your spend on what will generate the most income for you either through increase rents or reduced expenses.