That's why they typically hit 1.5-2%.In my opinion, 2226 Goodlet is closer to a D area.

You need a real estate agent that knows the area better than you do, can spot a value, might have a network of people built up to find properties before they hit the market, etc.

So then I get a call from an electrical contractor stating that the unit next door is having some issues with their power and they have located that the problem is under my deck, and they will need to remove boards, dig it up, and do a repair.However, a couple of small twists in the story make me nervous.One is that apparently the homeowners are responsible for the maintenance of the power line from from the transformer, so it’s not the association with deeper pockets who is on the hook, its the nieghbor .

Assuming it's your own house,  I'd look for the big ticket items and the condition-- how old is the roof/HVAC/electrical/plumbing, as those will be your most costly repairs.   

If this is a one off flip it may be different but if you plan on creating a long term business doing that your reputation could take a big hit justified or not.With court there is the time you spend on filings,attorneys,preparing for a case, going to court,etc.

After you hit him with that number you'll have a better idea of how much he wants. 

They both have completely different gas, water and electric meters.

This includes some professional labor for the roof, siding and electrical(whole house- has some knob and tube, minimal outlets, needs hardwired fire alarms). 

Had to replace that 3ft wide strip where we pulled the wall out anyway.The thicker stuff was actually easier to remove with steady, multi-angled hits with a tile scraper. 

)                           -   Gross Monthly Operating Income              32,642.00 Monthly Operating Expenses Monthly Property Management Fees                   832.00 Repairs and Maintenance                1,000.00 Real Estate Taxes                5,241.00 Rental Property Insurance                1,959.00 Homeowners/Property Association Fees   Replacement Reserve                2,000.00 Utilities                1,291.00  - Water and Sewer    - Gas and Electricity    - Garbage    - Cable, Phone, Internet   Pest Control                   155.00 Accounting and Legal                   150.00 Advertising   Monthly Operating Expenses              12,628.00 Net Operating Income (NOI)   Total Annual Operating Income            391,704.00 Total Annual Operating Expense            151,536.00 Annual Net Operating Income            240,168.00 Capitalization Rate and Valuation   Desired Capitalization Rate 10.00% Property Valuation (Offer Price)         2,401,680.00 Actual Purchase Price         3,100,000.00 Actual Capitalization Rate 7.75% Loan Information   Down Payment            620,000.00 Loan Amount         2,320,000.00 Acquisition Costs and Loan Fees              60,000.00 Length of Mortgage (years)                          30 Annual Interest Rate 4.970% Initial Investment            680,000.00 Monthly Mortgage Payment (PI)              12,411.76 Annual Interest            114,527.10 Annual Principal              34,414.02 Total Annual Debt Service            148,941.12 Cash Flow and ROI   Total Monthly Cash Flow (before taxes)                7,602.24 Total Annual Cash Flow (before taxes)              91,226.88 Cash on Cash Return (ROI) 13.42% The property is being given to me after completing 40 year certification (updated plumbing, electrical, parking, most units are decently remodeled.