Any profits above this return will be split 75% to him and 25% to you as compensation for your management fee.You could charge only an acquisition and management fee instead if he feels the split is too rich for you or you could offer to cap the 75/25 split at a certain dollar value and thereafter, it defaults to a 90/10 split representative of the cash contributions.

So it's an 8 cap? 

Hey BP,Been reading through BP and talking to several people - several discussing how it may not be the best time to invest in SF or MF homes in Columbus due to increasing SF home prices and decreased MF cap rate. 

Especially if it is an older property (Maintenance costs, & cap ex, alone can through you into the red pretty fast if you don't have the cash flow and savings to cover things)  I think the loan pay down, tax benefits and appreciation are all great things, but cash flow is going to contribute some of the money for your next investment.

If you are looking to still move forward with the condo take a look at if the HOAs have any rental caps, restrict STR, and understand their finances.

Look at their cap rates to understand what cap rate this property should sell for.

Value is expressed by dividing the income stream by a cap rate. 

It has strong numbers with a cap rate just below 10% and photographically appears to be in good condition. 

It seems like the advice when running the calculators is to budget $100 per unit each for cap ex, management fees, and maintenance and 5% for vacancy.

Plus 10% cap ex (440) 5% repairs (220) 5% management (220) that’s about 2200 left per month.