Ridiculously poor gross rent ratio.

This sounds like a loser as a rental (read up on the 50% guideline which states that half of your gross rent will be consumed by expenses and vacancies over time.)

Gross annual rent is $34,956, NOI $22,300.Plan is to keep all tenants, and possibly do upgrades at least to the unit that we're paying hydro (and therefore heat) in, but we would have to see if that's financially advantageous or not.Any comments on this deal?

Seth,In my case the property tax should be not more than 2 monthly gross rents as buy and hold candidate but I prefer under 1.5 monthly rents.

Paying $113k for a property that only produces $1000 a month gross rent is a .88% rent to acquisition ratio which is a cash flow loser.

Example:Lender 1: Your 2 years tax returns showing any rental income is enough to use your income from the duplex AND the property you are looking to purchase(They'll ask for signed leases if its occupied, and there is a fnma/fmac form for estimating market rent that has to be filled out if it isn't)Lender 2: Will want 2 years tax return history for each property before they will use the income from that property From what I've seen, the calculation they use is Gross Rent * .75 - PITI = Income to add to your DTI.So if you have $1000 gross rent, and $500 PITI, this will add $250 to your gross income used for your DTI ratio.I'm really surprised that lender won't use the rent from the new tenant that's been there 6 months, that's lame.

I proabably could make 300 a room (including the office) so that would be a gross rent of $1800 as opposed to the market rate of $1500.

Should I just treat the net amount received as my "gross rent", and then deduct all of my expenses from this gross rent?

As to the ideas of products and sreving the big box stores, there is a gross lack of understanding of business, this is not a highschool level of market analysis.

We have all tried to save on the net after our bills, not the gross.