That makes sense, when you consider that someone else is doing all the work for you: finding the deal, doing the rehab, arranging for managment, maintenance, etc, etc, etc.

What's the maintenance cost?

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I see this as $1,000 a mth rent and deduct 50% for maintenance & vacancy which leaves 500 a mth minus your debt service = +$340 a month is a good deal

Your tenants will know sooner or later after they see you doing all the maintenance around the property.

That is just not the reality and if you choose to ignore the other expenses, they will bite you smack in the face once you own it and then the reality will set in that you overpayed.Using the most liberal operating expense ratio possible (37%), your annual NOI is $128,520 and at a 10 cap, makes your best offer $1.285 million (which I would not pay that much personally as I believe you would be overpaying)

I think the biggest problem would be coming up with the 20% needed to make these numbers work.Purchase Price:$2,350,000Property type: 72 unit ApartmentYear Built: 1970Rentable Area: 58,211 sq ftLot Size:: 124,823 sq ftCurrent Occupancy: 89.19%Purchase Price: $2,350,000Assignment Fee1: $100,000Cap Rate2: 10.77%Net Operating Income3: $253,078.29Pre-tax Cash-flow4: $102,986.01Earnest Money Deposit5: $21,500Down Payment: $470,000Loan Amount: $1,880,000Amortization Period: 30 yearsInterest Rate: 7%Mortgage: $12,507.69Loan To Value Ratio: 80%Debt Coverage Ratio: 1.5044Unit Mix: 24 1/1.5, 47 2/2, and 1 3/2Scenario A:You'll purchase the property at a 10.77% cap rate (based upon his actual numbers), DCR of 1.6862 (assuming you get financing at 80% LTV with 7% APR); and you should receive an annual pre-tax cash-flow of at least $102,986.Scenario B:You could increase your cap rate to 12.1%, your DCR to 1.8949, and the yield of your annual pre-tax cash-flow by nearly $32K simply by reducing your vacancies and collections (from nearly 11%) to 5% of the gross rents (which is the norm for that area—so it's doable).

- Taxes (you should be able to get this from you local tax assessor website)- Insurance (call your insurance agent for a quote)- Maintenance (what kind of condition is the place in?

Condo HOA covers Roof and Exterior Maintenance.

That being said, without my housekeeper I would be dead in the water as they are who are going to provide me with the info I need for general maintenance and secure my confidence that my guests will be coming into a clean and ready home.