Here's the math I did:MonthlyIncomeRent$12,000 ($1,500 a door)less monthly Operating Expense$5,613 (including vacancy factor$600, property taxes$1,333, insurance$560, maintenance$960, management$1,200, replacement reserves $960) which fits almost 50% ruleThen, Net Operating Income (NOI)$6,386.67/monthless monthly Debt Payment$4,816.79 (based on purchase $905,000 w 20% down, estimated 7% interest rate on a 30-year loan)CashFlow$1,569.88/month (on average $196 a door)Total Investment: $198,000 (including $181,000 for 20% down plus $10,000 for repair budget and $7000 for closing assuming Seller doesn't help with the closing cost)Cash on cash Return: 9.5%DSCR (NOI/Debt payment): 1.33Cap Rate: 8.4% (I used purchase price $905,000 plus repair budget $10,000 for the market value)Thank you so much!

Here's the math I did:MonthlyIncomeRent$12,000 ($1,500 a door)less monthly Operating Expense$5,613 (including vacancy factor$600, property taxes$1,333, insurance$560, maintenance$960, management$1,200, replacement reserves $960) which fits almost 50% ruleThen, Net Operating Income (NOI)$6,386.67/monthless monthly Debt Payment$4,816.79 (based on purchase $905,000 w 20% down, estimated 7% interest rate on a 30-year loan)CashFlow$1,569.88/month (on average $196 a door)Total Investment: $198,000 (including $181,000 for 20% down plus $10,000 for repair budget and $7000 for closing assuming Seller doesn't help with the closing cost)Cash on cash Return: 9.5%DSCR (NOI/Debt payment): 1.33Cap Rate: 8.4% (I used purchase price $905,000 plus repair budget $10,000 for the market value)Thank you so much!

Should we reserve the equity for EMD and rehab costs while applying for loans through bank/lenders to cover purchase price?

After calling yet another lender, I am told that because this would be my first deal, it is better to put my own money into the deal (10%down) to show that i am serious as well as I need to show 3-6 months in reserve for them to fund me.

This isn't a 'natural monopoly' like a utility company or subway system, there's no reason NOT to have multiple parallel providers of the good or service.

Make sure you have cash reserves. 

@Evan Polaski for now I plan on HML with a down payment until I build up enough cash to purchase outright (with a cash reserve for emergencies).I just got my LLC created so by the time I get the banking and preapproval lined up and the insurance I'll be a little closer to coming home.

I also like Joe Fairless counsel or three laws of investing, “Buy for Cash Flow, Have Reserves and Use Long Term DebtFinancing”

I am happy with the cash flow, the problem is the HOA has a unit not paying their dues (greater than 15% of the total condos) and the HOA is litigating, which makes it a non warrantable loan, and the reserve funds are low ($10k remaining across 5 units)  The condo is the cheapest 4bd 3bth unit in the area which interested me, the thing I am worried about is not being able to cash out refinance and getting hit with more assessments as the reserve fund is low. 

Chances are they know some contractors who they’ve used and recommend.If you bring business to lenders, prop managers and agents, they should be willing to share the details without much reservation....