Asking price $185,000Current potential gross rent $1,930 (mo), actual gross rent $1,320 (mo). 

I do use Gross Yield as a quick was to get a feeling for whether it's worth looking into something.

The numbers are as follows: Asking price $1.2 Million, 11 2bed/1 bath, 2 3 bed/1bath, 1 efficiency, 1 garage/unit, 20 year old building built by owner, owned free and clear.Owner provided monthly financials (He self manages):Taxes $1180, Insurance $312, Common area electricity $200, sewer $235, trash $75 Total monthly expenses = $2002 Gross Income: $683.50/month/door*14 doors = $9570/yearAdditional garages rented to non-tenants = $420/month, $5040/yearLaundry Income = $200/month, $2400/yearTotal gross income = $10,190/month, $122,280/yearI proposed owner financing and the seller is open to it at very good terms.

I personally will not entertain less than 12% ROI after including property management costs at 8% of the gross rents.

(Your property is going to get gross, quick!)  

Hey Alex,Here are some of our qualifications:● Household Gross monthly income must be at least three times (3x) the monthly rent. ● No Evictions/Broken Leaseso No outstanding debt to housing providers of any kind o Proof of honorable reconciliation required o Positive re-established rental history required ● No criminal records and convictions of murder, burglary, sexual assault, indecency with a child, prostitution, human trafficking, elder or child abuse, sex offenses, and similar offenses. ● All bankruptcies MUST be dismissed or discharged. ● Credit approval is subject to credit risk fee below 620 and potentially additional security deposit.● All residents of the property 18 years of age or older MUST submit an application and complete a criminal and credit background screening. ● Smoking is NOT permitted inside the home or garage.The entire list is on our website but I can't post the link here.

As long as your gross rent covers your expenses and you have some cashflow, then you are good to go. things you should do is to have your finances in order.

@Alec Frasier Also, most title companies should report gross proceeds, so make sure your accountant sees the credit and adjust so your not paying capital gains on that 5k.

Its not uncommon to gross 100k on a good Vrbo.Most of us, I beleive, are acquiring more not selling.

You can always show bank statments for qualifications where the bank/lender will use your gross deposits as income.