PMC: We negotiated $80 a month flat rate for management, so like 8.5% management feeRent: $950 a monthOperating cost: I estimated  70% overall operating cost which included the 8.5% management fee, mortgage and repairs/upkeep, etc)Average net income would be $3216 a year Gross income would be $11400 ($950 rent X 12 months before all expenses)So re-calculating the cap rate and using total gross income I'm getting a rate of 4% as opposed to the 4.68% I originally calculated.Does that seem more accurate? 

., boiling water poured down the mound) or any one of the chemical treatments the big box stores have to deal with them.

A letter from a licensed medical professional in the State where subject property sits that states that the specific emotional support animal is a part of tenant's treatment for a qualifying mental condition is the federal law.

@Timothy Burnes Don't do it. 10-20k in equity is not worth all those issues.Bed bugs are a significant defect that can take either $5000 and tenting the whole building for heat treatment, which requires vacating the tenants or getting them hotel rooms for a few nights, or a sustained program of prevention with bed risers, leg traps, sealed mattress bags, and the tenants need to keep it up for.. get ready for it.. 6 months, which is how long they can live without a meal.Sewage in the basement could be a big issue if you have a sewer backup problem.The sinking toilet sounds like it needs immediate attention, but at least that's a straightforward repair.The other issues are what I would consider "normal" as in, you could fix them but don't need to in order to make the place liveable.Based on the bed bugs alone I would avoid... if you are comfortable with this level of rehab you should be getting a way better deal. 

In my area they are about $100/month but take care of all the treatments and cleaning.

Heat treatment is more expensive and less effective than other treatments. 

We were able to re design the floor plan to allow for a laundry closet that was out of sight and out of mind so it wasn't an eye sore.

How will we know if the treatment worked?  

In no certain order this is what we find matters most on a BRRRR appraisal as far as things you can control- outside curb appeal- remodeled kitchens, baths- Updated electrical and HVAC- a new roof if the current one is a big eye sore

Remember you can help people by giving them amazing places to rent. taking the eye sore of the community and making it great, fixing what is broken and giving someone pride in their living situation.