Both of these places would have positive cash flow allocating for legit cap expense ($250-$300 for a detached unit per month, so at least $500 for a detached duplex), vacancy 5%, and maintenance.I really should not be encouraging competition in my area but I am NOT using Escondido because I think it is unique but because I know it well and know what duplex to quad are on the market and what duplex to quad have sold. 

Any advice is greatly appreciated.8bd/4bth legal 3 unit Unit 1:2/1 TNT pays all, rent 550Unit2:2/1 TNT pays all rent 475Unit 3:2/1 rent 450Asking price 100kARV 140kDp 5% at 5k loan AMT 95kLoan interest at 4%Expenses:P&I: 453Insurance: 100 Water sewer: 100Prop tax:300Repairs: 147.50 at 10%Capex:147.50 at 10%Vacancy:118.00 at 8%Cashflow: 158.46Cap rate:5.25%Coc ROI:38.03%GRM:5.65This represents a purchase at asking price however when I viewed the unit a couple things stood out the attic seemed to have done a little moisture issues so I'm guessing the roof might need replacing, also the tenant in one unit had been therefore 10 years, thus the rental are below market value from comparables a these units rent could conservatively be rented for 600 600 and 525 boosting cf to 383.46, the first unit has lower ceiling also the one tenant who'd been there for 10 years complained of the first unit being occupied by gang bangers who sell drugs out the unit.

I still don't go MTM then, because I want to avoid having vacancies in the winter.  

And I usually hear from my tenant once or twice a year, because they are always travelling or busy otherwise...BUT you can only get these tenants easily if the property is in a urban core, very close to LOTS of high paying jobs....I am not familiar with your local market, but if it is NOT a big urban core, you are probably going to hard time finding someone willing to pay $5K in rent.....EXPECT long vacancy

.)- 2% vacancy = $204/yr- Insurance $500/yr- 5% repair budget = $510/yr- Cap ex of $120/mo = $1,440/yr- Mortgage terms: 25% down, 15 years at 5% interest.I tried to be conservative with these numbers and cover our rears.  

Either way they can hammer your vacancy rate.

Also consider your own personal cash flow situation if you can't rent the house/have a vacancy.

She mentioned that the place is currently fully rented out, which in my head, is a great thing.After we conversed a little more, she asked me if I was planning to do renovations on the house, stating that the house was in good shape, but the tenants "are a little sketchy" and now would be a good time to evict them all, renovate and get fresh tenants.The vacancy rate is lowish - but I'm not too sure, I want to do my due diligence on what she said.

Essentially using leverage to build wealth.And, the risk of something happening to one property is high (heating system, roof, vacancy, etc.)

Also, as far as your brother is concerned.... if I were advising him, I would say that $50/month is not enough to put your credit and future buying power on the line.Also.... it sounds like you may not have ongoing maintenance and vacancy costs in your cash flow analisys... be very careful about this.