It has had no vacancy and repair & maintenance has been about $250 total.

So, once again, assuming that the average price for commercial property in your area is $100 per square foot, then using the above goal, you don’t want to pay any more than $60 per square foot, and you would reduce that amount by any repair costs or deferred maintenance costs.Cash flow investors calculate what they are willing to pay expressed as the percentage of the rents in terms of the purchase price.

You will have other expenses besides taxes and insurance, and you will have vacancies.Your 20% return amounts to only 12.66% on an annual basis.

However, some lease options are set up where the tenant is responsible for maintenance and repairs.

Vacancies, economic vacancy (like the "two months free" you mention), advertising, utilities when vacant, evictions, tenant damage (brand new or not, tenants can still do damage), CPA, Lawyer, maintenance, property management, etc.

They have books for general maintenance as well as books that are specific to a given topic - like electrical.

In AZ, the maintenance is done in-house by my PM.

Another alternative is:Vinyl siding - this will be a lot less maintenance but cost will be at least $10,000Both air conditioning units are 25 years old (as old as the duplex) and could go out at any time.

Legal fees, rehab costs, and maintenance are a NORMAL part of the business.

Personally I think being responsible for the repairs, etc, would be a nightmare.Could your friend advise you on how much maintenance he has to do?