Whether you believe it or not, here is the break down of this deal:# rents: $1100/m# HOA:$244/m#TAX:997/yr#Management:$50/M#insurance:$340/yr#Capex:$500/yr#NOI:$7835/yr#Cap rate: 8.9%The only uncertain cost will be vacancy, however so far this condos is filled with tenant from day one.

We are familiar with the area and with my local business we could fill any vacancies with my staff. 

sorry, im on my phone. consider vacancies, maintenace, capex, management, utlities you pay, taxes (city, county, school...call the county assessor office).

One vacancy/ turnover will eat an entire years worth of cash flow.

She is charging me 1 month of rent and does all showings and screening.I ended up approving a couple that had "bad credit history" (under 600) but good history with past landlords as my rental was approaching the 3 week of vacancy.

It seems that every BP Florida deal analysis I see that comes up is for a Condo, always asking a price that would return slightly less than 1%/m gross rent, and almost invariably ignoring or brushing aside Vacancy and Property Management costs, so their figures can squeeze into the positive cash flow column. 

If the latter be sure to factor in all of the vacancy and turn costs associated with this. 

John Frankwithout a lot of info, I would say:- 4% vacancy seems low, specially in what I imagine are 1bed/1ba units, which tend to attract a more transient tenant.- $20 electricity?

I'm not too worried about vacancy since it is right next to a university.

On the flip side you will need to research the demand for the unit in the future, Business/commercial real estate has a much longer vacancy period than housing rentals.